Branch accounts

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 March 2012 in a question under debtors method it has been asked to pass journal entries..however in the suggested sollutions there is no entry for opening bal i.e branch ac dr. to opening stock .. why is it so ?

CA Dileep Surya Kumar

CA Dileep Surya Kumar (Expert)
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10 March 2012 All the branch balances are closed at the year end and the same will be transferred to Balance sheet( using prefix as branch debtors, branch stock etc).. These are opened with by way of opening balances at the year beginning.

For such

Branch a/c
to Branch Assets

Branch liabilities a/c
to Branch a/c

entries are required.

In suggested answers you can see
To opening balance instead of writing individual entries.