Branch office sales

Sir,

Let me know one thing, For example if Gauhathi branch purchased Tea in aution at a price of 100,000 (without GST).... what is the billing price to Headoffice while sending this goods from Branch to Head office which is located at kolkata.....

Thanks

Selling price to Kolkata office is the same price purchased at Gauhati Auction.

Earlier we used to make a Stockt transfer against Form F.

Sir,

If price charged by branch to head office is as same as purchasing price (no profit eliment in Branch books for this transaction)......

There will be no issue..... even payment directly made by headoffice to auctioneer..... you can pass one simple journal entry in books of branch to to setoff the liability as well as asset....

There is no doubt about denaing credit in such circumstances

Thanks

Thank You