accountancy

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rohit (Querist)
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17 October 2010 what journal entries are made in the books of the Head office to incorporate the trial balance of an independent branch ?

Kishanlal Paliwal

Kishanlal Paliwal (Expert)
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18 October 2010 Dr. all expenses accounts by crediting Inter branch reconciliation Account.

Cr. all Incomes and revenue accounts by debiting Inter branch reconciliation Account.

Dr. all assets accounts by crediting Inter branch reconciliation Account.

Cr. all liabilities accounts by debiting Inter branch reconciliation Account.

Ensure that Inter branch Account shows ZERO balance.

In the next year just pass the reverse entry of Assets and Liabilities Account showing in Inter Branch reconciliation Account.

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K.L.Paliwal