Accounting treatment of stock transfer to branch

CA Sanjay Baheti (PROPRIETOR) (1155 Points)

12 December 2011  

One of My client being an Individual engaged in Manufacturing of SS Pipes/Tubes
having plant/manufacturing facilities in Ahmedabad in Gujarat as Head Office. also the Product is excisable.Moreover it is also having a Branch office in Chennai (Tamil Nadu). Sales is made both from Ahmedabad & Chennai.

So far Sales at Branch is concerned the Stock is transfered to Branch from H.O. against Form F. Out of Stock received from H.O. the Branch sells Goods from Chennai by way of issuing Sales Invoices to Customers from chennai itself.

How to account for the said Activities both in H.O. Books & Branch Books after keeping in mind the accounting concept so far HO/Branch is concerned , excise Law and State local taxes with a simple illustration with complete accounting Entries.