Cash flow reconciliation

Dear All

 

How to reconcile branch cash flow when some cheque issued to creditors from head office

 

Example:-

Head office 

Branch A S/creditors A/c-----------Dr.  Rs-10000/-

To, Bank A/c--------------Cr.                              Rs.-10000/-

         

 

Branch A

S/Creditor A/c-------------------------Dr.  Rs-10000/-

Head office A/c-----------------------Cr.                  Rs-10000/-

 

Head Office Cash Flow Shown

Inflow                                                                       out flow

                                                                   Branch A        Rs-10000/-                                   

 

 

Branch A Cash Flow Shown

Inflow                                                                       out flow

Nil                                                                                 Nil

 

Note-Branch A has not any bank A/c

 

please suggest for above

 

Replies (1)

It shall be adjusted when you consolidate your accounts. As branch does not have any bank account, you will not be able to reconcile branch cash flow.

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