Branch Accounting Entries

>> January 2, 2011


In very large scale corporation, products are sold in different countries, states, districts and cities. All this commercial activities can be possible only after making independent branches. For knowing the correct financial and revenue position of each branch, branch accounting is best tool for this. Co-ordination of branch accounts with head office accounts is also necessary. All these things can be done by branch accountant, if he knows to pass branch accounting entries. So, today, we will discuss different branch transactions and its branch accounting entries.

1. When Cash or Bank money is given by head office to branch for operating branch activities.

In the books of branch

Cash/ Bank Account Dr.

Head office Account Cr.

2. When expenses are paid by branch

In the books of branch

Respective Expense Account Dr.

Cash / Bank Account Cr.

3. When expenses are paid by head office

In the books of branch

Respective Expense Account Dr.

Head Office Account Cr.

4. When stock transfer from Head office to Branch

In the books of branch

Stock Account Dr. ( At cost )

Head office Account Cr.

5. When branch transfers cash or bank for any net revenue

In the books of branch

Head office Account Dr.

Cash / Bank Account Cr.





You might like:


Follow Us


2 comments:

shakthi January 13, 2012 at 10:44 PM  

Everything is informative, thank you sir.

Senthil Nathan April 2, 2014 at 9:57 PM  

All Entries as detailed. but i need journal entries for as such branch sold goods to customer. but customer paid the cash directly to head office. i need journal entries for in head office Books and Branch Office Books.

Post a Comment

About Accounting Education


An educational site with 2500+ articles, solutions, video-guides and tutorials on all topics related to accounting and finance.

Get Update on Mobile


Type svtuition.org in your mobile phone web browser for free access anytime, from any place.The content is designed specifically for cell phones and mobile devices.

Contact Us


Contact us Send an Email Phone number and vCard LinkedIn profile Follow us on twitter