branch accounting

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PARDEEP SINGH (Querist)
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03 August 2010 Dear Sir

Our company is having Two branches, if from first one branch's current account any amount get credited into second one brnach then.

Then while maintaining the second branch account in which head the the account will be showed. (First one branch current account.)

Thanks in advance

CA. BIJENDER KR. BANSAL

CA. BIJENDER KR. BANSAL (Expert)
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03 August 2010 IN SECOND BRANCH IT WILL BE PART OF CAPITAL BY NAME OF INTER UNIT BRANCH A/C.

AT THE TIME OF CONSOLIDATION OF ACCOUNT FOR FINANCIAL RESULTS , IN ONE BRANCH IT IS SHOWN IN LIABLITIES SIDE AND IN SECOND IN ASSET SIDE. IN CONSOLIDATED FINACIAL RESULTS , NO EFFECT IS TAKEN OF THESE BALANCES.