branch accounts and head office account
This query is : Resolved
03 May 2011
when we prepare company baance sheet we make consolidate profit and loss A/C but in case of firm we prepare branch profit and loss A/C seprately and head office profit and loss A/C seprately what is the reason behind it please tell me
03 May 2011
In case of Company we make Consolidated profit and loss account only in the case where company have sum subsidiary, JV or associates having different business entity. This is also required by company act.
If company has only branches then we never made consolidated BS but only combined all of them.
In case of Firm Branches has to be merged in the firm account and it will not called consolidated accounts. If firm has made some investment in some accounts then it has to show as investment in their books of account because it was not fall in the subsidiary.
This difference arise because of status of business.
If company has only branches then we never made consolidated BS but only combined all of them.
In case of Firm Branches has to be merged in the firm account and it will not called consolidated accounts. If firm has made some investment in some accounts then it has to show as investment in their books of account because it was not fall in the subsidiary.
This difference arise because of status of business.
03 May 2011
"Consolidate" it self means merging of 2 or more P&L A/cs.Hence when there is a single P&L A/c it is not said that it is a consolidated P&L A/c.
Consolidated Balance Sheet & P& L A/c is thus nothing but merging of Balance Sheets and P&L A/cs and this can be possible when separate accounts of Holding Company & of its Subsidiaries' a/cs have been prepared
The basic purpose of preparing separate Branch and HO A/cs is to evaluate the profitability and financial position at the respective accounting center.
Consolidated Balance Sheet & P& L A/c is thus nothing but merging of Balance Sheets and P&L A/cs and this can be possible when separate accounts of Holding Company & of its Subsidiaries' a/cs have been prepared
The basic purpose of preparing separate Branch and HO A/cs is to evaluate the profitability and financial position at the respective accounting center.
08 June 2011
In case of firm Branch PL & HO PL is only for MIS matter for income tax purpose we have to file merged or say consolidated PL
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- ITC temporary reversal and reclaim
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- Applicable TDS rate for sale of property in Nov 2024
- Capital gain consideration
- TDS deduction (debit notes)
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- TDS on purchase of value vouchers for employees ?
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
