hi ALL,
i've a doubt in branch a/c. can anyone help. plz.
Exp. paid by UK branch on behalf of Head Office in India. What is the journal entry in HO & branch. How to close each books?
tnx.
RK
3 Replies
siddharth
(C.A.)
(175 Points)
Replied 03 August 2007
Hi,
The following entry will be passed by Branch UK
HO a/c -- - dr
To Bank a/c
(being expenses paid on behalf of HO)
In HO Books
Expenses a/c - - -dr
To Branch a/c
(being HO expenses paid by branch)
Nadim Khan
(Accounts)
(58 Points)
Replied 14 August 2007
it all depends on if branch is maintaining separate accounting books and for what purpose amount has been paid, if the expenses paid on behalf of head office than pass this entry : -
Dr. Expense A/c
Cr. bank / cash a/c
and if all accounting is maintained at head office then then claim this expnse from head office via a Debit note and pass this entry
Dr. Expense A/c
Cr. Head office
(Nadim Khan)
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