Branch account
This query is : Resolved
12 April 2013
we have two offices with gujrat & maharashatra. we have also vat registration with gujrat & maharashatra. how we should make accounting of sales & purchase in gujrat & maharashatra.
12 April 2013
Is you asking about the transactions between two branches or individual branch accounting or asking about which accounting policy has to follow.
OM SAI SRI SAI JAI JAI SAI
OM SAI SRI SAI JAI JAI SAI
12 April 2013
individual branch accounting & how it shown in one balance sheet
12 April 2013
Then there are two ways of accounting.
One is you can maintain both accounts in one books i.e keeping of accounts at one place in such case automatically both the transactions will appear in one balancesheet. But for each item create two ledgers to differentiate the both branches transactions i.e for example for sales account create Gujarat sales account and Maharashatra sales account separately but both shall be grouped under sales account like this all account.
Another way is keeping of accounts separately i.e maintaining of separate books for each branch and at final or at the period you want prepare consolidated balance sheet to show at one balance sheet.
OM SAI SRI SAI JAI JAI SAI
One is you can maintain both accounts in one books i.e keeping of accounts at one place in such case automatically both the transactions will appear in one balancesheet. But for each item create two ledgers to differentiate the both branches transactions i.e for example for sales account create Gujarat sales account and Maharashatra sales account separately but both shall be grouped under sales account like this all account.
Another way is keeping of accounts separately i.e maintaining of separate books for each branch and at final or at the period you want prepare consolidated balance sheet to show at one balance sheet.
OM SAI SRI SAI JAI JAI SAI
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12 April 2013
My suggestion is following the second method is better because of books are clear and shows incomes and expenditure separately and net profit and gross profit for each branch with out giving confusion and books are very clear.
Entry of the transaction shall be make in the books for which branch such transaction related.
OM SAI SRI SAI JAI JAI SAI
Entry of the transaction shall be make in the books for which branch such transaction related.
OM SAI SRI SAI JAI JAI SAI
Message likes :
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