Pls help regarding branch a/c

A/c entries 552 views 4 replies

Himesh Katuria

Student

258 Points Joined June 2012

Hello Friends ,

Pls help me : What is the nature of " GOODS SENT TO BRANCH ACCOUNT " .

Thank you in anticipation

Replies (4)

Hojefa

Ca final

178 Points Joined July 2013

It is nothing but consider as purchase for branch from h.o while sales for h.o to branch.

As we r debiting purchase A/c, here goods received from h.o a/c will be debiting in branch book,while as we r crediting sales a/c here goods sent to branch will be crediting in h.o books,

so logic of term is same as purchase n sales but diffrent in its name , bec branch / h.o is doing inter trading hence this a/c is used.

NOUFAL

ACCOUNTANT

767 Points Joined January 2012

Branch is not a separate legalentity; it is simply a segment of business.

In order to exercise great controlover the branches it isnecessary to ascertain profit orloss made by such branchesseparately.

For the Goods Sent to Branch we can use the stock tranfer out invoice... there is no need to collect the vat. but you need to show the vat retun as stock tranfer out that value. you can sent it on the item cost.

satish kumar Chauhan

accountant

365 Points Joined May 2011

agreed with noufal

UMANG SHAHI

student

98 Points Joined November 2013

Completely agree with hojefa... But also.. While treatment in branch a/c... Branch A/c. Dr. To goods sent to branch a/c. (Being goods sent to branch). The above entry will be done in the books of H.O. while in branch books..it will be vice-versa. Hope this will help you.