BRANCH FINANCIAL STATEMENT

This query is : Resolved

pratik (Querist)
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25 November 2019 We are facing issue at time of preparing Financial Statement .We have two branches and also maintain books of accounts separately.So We not understand how to consider Branch Transaction at time of preparing Financial Statement.
I requested u please provide reasonable solution regarding the same .

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

(Expert)
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25 November 2019 I do not know the software used by you. Each of the branch should maintain ledger in other branch name under the head branches. Whenever expense/ purchases/ payments etc made , the following entries to be passed.

Receiving branch
Expenses/ purchases account Debit
Branch account Credit

Issuing branch
Branch account Debit
Expenses/ bank Credit

Periodical reconciliation of ledger is to be made ( say monthly) to have common balance that is the same amount shown as payable by one branch and shown as receivable by another branch. Then while preparing consolidated financial statement ( debit and credit balance will be set off). But payable and receivable amount will be shown in the respective branch