Hello, how can I prepare the branch account statement, or do I have to prepare the balance sheet statement?
Thank You.
Hussain Sabir (3 Points)
14 November 2022Hello, how can I prepare the branch account statement, or do I have to prepare the balance sheet statement?
Thank You.
prasad Nilugal
( GST Practitioner & Accounts )
(14606 Points)
Replied 15 November 2022
There are two method
1) separate Trading , profit & Loss A/c and Balance sheet of Branch and Head office
2) Consolidated P&L and Balance sheet of Head office and Branch .
If you are using first method then you have transfer profit or loss of branch to Head office and converse entry in the H.O Book , also Advance given in the starting to the branch will be as Capital in the books of Branch .
IF you are using second method then all profit or loss of branch will be transferred to Head office separately after that all the Assets and liability will be transferred to Head office and converse entries in the books of head office
Transfer entry in the Branch Book
1) Head office A/c Dr
To Assets Branch A/c Cr
2) liability Branch A/c Dr
To Head office A/c Cr
Hussain Sabir
(3 Points)
Replied 21 November 2022
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