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How to prepare branch account statement

Hussain Sabir (3 Points)

14 November 2022

Hello, how can I prepare the branch account statement, or do I have to prepare the balance sheet statement?

Thank You.

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2 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14165 Points)
Replied 15 November 2022

There are two method

1) separate Trading , profit & Loss A/c and Balance sheet of Branch and Head office

2) Consolidated P&L and Balance sheet of Head office and Branch .

If you are using first method then you have transfer profit or loss of branch to Head office and converse entry in the H.O Book , also Advance given in the starting to the branch will be as Capital in the books of Branch .

IF you are using second method then all profit or loss of branch will be transferred to Head office separately after that all the Assets and liability will be transferred to Head office and converse entries in the books of head office

Transfer entry in the Branch Book

1) Head office A/c Dr

To Assets Branch A/c Cr

2) liability Branch A/c Dr

To Head office A/c Cr

Hussain Sabir (3 Points)
Replied 21 November 2022

Thanks for sharing such wonderful information. Basically, I would like to know about a site, that is based on different apps and games, to get to know the estimation of profit and loss through financial statement, my organisation has a lot of customer.