Branch entry

Aalok (accountant) (50 Points)

20 October 2019

party payment paid by HO but expense had another brach (other books expense) what should be entry made in bothe book.

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Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 20 October 2019

Let's assume that Stationery purchase to Ram Enterprises in branch & H.O. paid the bill of Rs. 5,000/-

Entry will be in branch books:

Stationery A/C ............... Dr. 5,000/-

Ram Enterprises A/C .................. Cr. 5,000/-

Then second journal entry will be as follows.

Ram Enterprises A/C ............... Dr. 5,000/-

H. O. ......................... Cr. 5,000/-

Entry will be in H.O. books:

Branch A/C ............... Dr. 5,000/-

Ram Enterprises A/C........................ Cr. 5,000/-

Then second journal entry will be as follows.

Ram Enterprises A/C ............... Dr. 5,000/-

Bank A/C ......................... Cr. 5,000/-

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