branch accounts

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Querist : Anonymous (Querist)

15 July 2010 why is cash stolen at branch is crdited in branch stock account in stock an debtor method

CA SURENDRA KUMAR RAKHECHA

CA SURENDRA KUMAR RAKHECHA (Expert)
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05 August 2010 If there is a profit in the branch; then Head office a/c is credited.

Right ?

Ask why ?

Because Branch is a part of Head Office and all the profits and gains are relating to the H.O.

Similarly; a loss of Branch is a loss of H.O. hence Head Office a/c is debited. To that extent now Branch is not liable to return the amount to H.O.

Right ?

(Now don't ask why?)

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