Branch Accounting

rajasekhar (B.Com) (21 Points)

10 July 2020  

Can you please clarify whether we can use control accounts for Expenses paid by Head Office on behalf of branches instead of directly debiting the branch Account.

Example :

Salaries paid by HO on behalf of Branch

in Head Office :

1) Salaries Payable Control A/c  Dr

    Bank A/c Cr

2)  Branch A/c   Dr

     Salaries Payable Control A/c Cr

in Branch Office

1) Salaries payable A/c   Dr

    Head Office A/c

Kindly clarify.

Thanks,