Branch Accounting Journal Entries
By viejaymak
@viejaymak (1)
South Africa
September 22, 2006 5:52am CST
what are the journal entries required to record the net income of a branch in the books of the branch and the books of the Head office
4 responses
@ckamalmba (1)
• India
9 Feb 11
kamal chaudhury(MBA,Finance)-Shyamnagar,WB,India.
1.In the books of branch:
a.Cash/cheque received from h/o : cash/bank A/c---Dr
To,Head office A/c.
b.Expenses paid by branch : Respective Expenses A/c---Dr
To, Cash/Bank A/c.
c.Income in Branch : Head Office A/c---Dr
To, Respective Income A/c.
d.Cash/Cheque send to H/o : Head Office A/c----Dr
To, Cash/Bank A/c.
2.In the books of Head office:(incorporation of branch accounts):
a.Cash/Cheque send to H/O : Respective Branch A/c---Dr
To,cash/Bank A/c.
b.Expenses paid by Branch : Respective Expenses A/c---Dr
To, Respective Branch A/c
c.Income in Branch: : Respective Branch A/c ---Dr
To, Respectve Income A/c.
d.Cash/Cheque Received From H/o : Cash/Bank A/c---Dr
To, Respective Branch A/c.
@meetsammy (578)
• India
25 Oct 06
dude i think u are at the wrong place....coz this is not the kind of question people would answer to....unless a CA comes on this website....
@vipul20044 (5794)
• India
25 Oct 06
The journal entries may involve, cashbook, Ledgers and different folios for individual monetry transaction
@Lalitshukla (314)
• India
25 Oct 06
Well, Branch-Accounting is a complicated issue and it depends upon lot of other things. Importantly, it depends upon what system is being followed?
We have different methods of accounting based on the following:
1. For Branches not keeping full system of Accounting
2. For Branches keeping full system of Accounting (independent branches)
Depending upon this, the branchs results (profit & loss) are incorporated in the Head office accounts.
If this sounds fine to you, I will let you know the Journal entries for whatever situation you want.