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.
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.
