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Journal Entries $type=three$count=6$author=hide$comment=hide$label=hide$date=hide$show=home$s=0

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Branch Accounting Entries

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.

Comments

: 20
  1. Everything is informative, thank you sir.

    ReplyDelete
  2. 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.

    ReplyDelete
    Replies
    1. In h.o book. Branch a/c Dr cash a/c cr. In branch book. 1.cash a/c Dr. h.o a/c cr 2. Customer a/c Dr cash a/c cr.

      Delete
    2. If customer buys from branch and direct paid to head office, it means, our liability will decrease with same amount

      in the books of branch

      Head office account Dr.

      Sale account cr.

      In the books of head office

      bank account dr.

      branch account Cr.

      Delete
    3. In the book of head office
      Cash ac Dr
      To branchac
      In the books of branch
      Ho ac Dr
      To debtors ac

      Delete
  3. What will be the entry of branch reported a net profit of rs 5400

    ReplyDelete
    Replies
    1. In the books of branch. P&la/c dr. to head office a/c.this profit will be incorporated in head office.vis a versa.

      Delete
    2. If same net profit of branch will transfer to Head office, then

      Head office account Dr.

      bank account cr.

      Delete
  4. What is the accounting treatment if head office give cash to meet initial expenses of the branch at the time of branch opening

    ReplyDelete
    Replies
    1. Same will record like receiving of cash in above transaction and entry.

      Delete
  5. why by company create journal voucher and for which transaction

    ReplyDelete
    Replies
    1. This question is not related to this topic. Ok, I can tell, in tally, when there will no possible to record the transaction in receipt, payment, sale, purchase voucher, then it will be recorded in journal voucher.

      Delete
  6. What is the journal entry for "cash received from ho? Where it is posted in journal or in contrast?

    ReplyDelete
  7. What is the journal entry for "cash received from ho? Where it is posted in journal or in contrast?

    ReplyDelete
  8. Query: In Tally, How we show Head Office A/c in respect of Branch Books where we showing Branch A/c in Branch/Divisions in Tally for Head Office Books. So please suggest me the ledger to show head office account.

    ReplyDelete
  9. Transfer of profit in branch account

    ReplyDelete
  10. Journal entry for "Remittance received from branch "

    ReplyDelete
  11. What will be the journal entry for salaries and wages at branch

    ReplyDelete
  12. Is there a journal entry for: opening debtors, credits sales and cash received from debtors. If so please analyze.

    ReplyDelete
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Accounting Education: Branch Accounting Entries
Branch Accounting Entries
Accounting Education
https://www.svtuition.org/2011/01/branch-accounting-entries.html
https://www.svtuition.org/
https://www.svtuition.org/
https://www.svtuition.org/2011/01/branch-accounting-entries.html
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