Branch Accounts Entries

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A Tust has 3 School A,B & C.
-All of them maintain separate books of Accounts.
-Expenses of Electricity Bill arise A-1600, B-1000 &C-1400. All of them made provisions in their respective books of Accounts.
- But cheque of total rs.4000 issue from School A.
what will be the journal entries and under which group in Tally ERP 9.
Replies (7)
In the Books of A entry will be
Electricity Exp A/c Dr
To Bank. A/C Cr
(Being electricity Exp paid)


In the Books of B entry will be
Electricity Exp A/C Dr
To A A/c Cr
(Being electricity Exp paid by A school )
when you pay back to A school entry will be
A. A/C. Dr
To Bank. A/c. Cr
( paid to A school Account paid earlier )


In the Books of C entry will be
Electricity Exp. A/c Dr
To A. A/c Cr
( Being electricity Exp paid by A school )
when pay back to. A school
A. A/c Dr
To Bank. A/c. Cr
(Payment made to school A , earlier paid )

In the Books of. B and C , A account will be under current liabilities balance sheet .

Does school A pay the bills directly to electricity board on behalf of b and c?

All three school are governing same Trust , so I think they can pay .

The entries are of good help because I forgot one can put branches in credit balances from your previous entries.

But Payment done by A, needs specify the amount of B & C.How to do and under which group in the books of A
You can see in Bank ledger of A school , all entries , on credit side.entry of Rs 4000/- paid and on debit side , amount received from B Rs 1000/- and amount received from C 1400/- .

you have  creat  ledgers  of   School  B  and  School  C   in  School  A '  books  of accounts   , under  Branch / division  in  Tally  ERP 9 . 

In my 1st  reply  , just  make correction  in 1 st  entry  after creation  of above ledger . 

Electricity   Exp        A/c      Dr        1600/- 

B School                  A/c      Dr         1000/- 

C  School                 A/c      Dr         1400/- 

To   Bank                 A/c                  Cr                  4000/- 


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