Branch Accounting Journal Entries
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
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.
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.