10 October 2009
my query is " when a company operates 5 branches apart from head office and prepares a consolidated trial balance in excel by providing a set of debit and credit columns to each site / branch & HO and one set for consolidated TB. while doing so we show inter branch dr /cr balance in consolidated TB. what will be the accounting treatment in Balance Sheet for the same (will the balance will be shown in Balance sheet or not)"
Year end balance of Branch A/C in Head office books and Head office A/C balance in Branch Books must be equal & get neutrilised i.e. will not reflected in Consolidated accounts but the balance of Branch A/C is represented by Items of Assets and Liabilities and P.L.A/C. for details reading you may refer the link below http://books.google.co.in/books?id=Kbwqvv24fg0C&pg=PT1071&lpg=PT1071&dq=accounting+of+Inter+Branch+account+balance+in+Final+accounts&source=bl&ots=2Z_tNbQAf1&sig=bG-Ve5YHV9MVU4OLRd_a7QVinbg&hl=en&ei=Dy7QSpCOD46PkQXWvMiEBA&sa=X&oi=book_result&ct=result&resnum=1&ved=0CA8Q6AEwAA#v=onepage&q=accounting%20of%20Inter%20Branch%20account%20balance%20in%20Final%20accounts&f=false
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