Trade discount in BRANCH ACCOUNTS

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teja sree (Querist)
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25 August 2016 Good afternoon sir/mam, I request you to explain me the accounting treatment of trade discount of branch in stock & debtors method. Thanking you in advance

CA Amrita Chattopadhyay

CA Amrita Chattopadhyay

(Expert)
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26 August 2016 If the branch accounts are prepared individually, the trade discount are needed to be taken into consideration. However, if the same is merged with head office and the discount is given by Head office, the effect of discount need not be shown

teja sree

teja sree (Querist)
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26 August 2016 Thank you, In case of dependent branches the do we need to take it in branch stock account as trade discount or we need to directly to branch adjustment acc Which is correct entry: 1.Trade discount a/c dr to branch stock a/c (or)Branch adjustment a/c 2.Branch adjustment a/c dr to trade discount

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teja sree

teja sree (Querist)
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26 August 2016 sry can you help in passing entry in both the situations thanks in advance