Ledger entries for goods transfer

Thanks Kunal Mishra!

Dr in the name of the branch to whom goods are sent  => Does this mean that the branch should be treated as a cutomer and the amount will be considered as a receivable from that branch?  

Hope Cr is to Stock at Hand

Originally posted by : Kunal Mishra
	Ledger is to be created under Branch/Division . At year end this A/c will tallied & closed.

Dear Kunal Mishra,

Can u pleae help me to understand this better.  What should be the type of this Branch/Division ledger? Is it a revenue or expense ledger? Can i create it under debtors main account?

also, please tell me what should be the entries required at the receiving store accounts section

Originally posted by : Kunal Mishra
	For your kind information in tally there is option to group ledgers under branch/division

Sorry. I am not using Tally. I am managing manually.

THanks. What should be the treatment when the item is in transit. Should I handle it separately?

How can be credit stock ?

Stock is calculated automatically by tally by taking opening stock + Purchases - Sales into consideration.

This is not sale.

So in order to reduce stock we should credit purchases in my view.

Please correct me if I am wrong.

shivani

Yes,Crediting the purchases would be Appropriate

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At the Year we need to prepare consolidated financial statements

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first we need to make sure that Branch A/c balance in HO books and HO A/c balance in Branch books tallied..

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Once it is done it is very easy to consolidate financials..All Assets of branch to be Added to HO Assets, and All LIABILITIES OF BRANCH CAN BE ADDED TO HO LIABILITIES..

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After passing such final entries in the books of HO Branch Account balance Comes to Zero