Hello Friends ,
Pls help me : What is the nature of " GOODS SENT TO BRANCH ACCOUNT " .
Thank you in anticipation
4 Replies
Hojefa
(Ca final)
(178 Points)
Replied 18 December 2013
It is nothing but consider as purchase for branch from h.o while sales for h.o to branch.
As we r debiting purchase A/c, here goods received from h.o a/c will be debiting in branch book,while as we r crediting sales a/c here goods sent to branch will be crediting in h.o books,
so logic of term is same as purchase n sales but diffrent in its name , bec branch / h.o is doing inter trading hence this a/c is used.
NOUFAL
(ACCOUNTANT)
(762 Points)
Replied 18 December 2013
Branch is not a separate legalentity; it is simply a segment of business.
In order to exercise great controlover the branches it isnecessary to ascertain profit orloss made by such branchesseparately.
For the Goods Sent to Branch we can use the stock tranfer out invoice... there is no need to collect the vat. but you need to show the vat retun as stock tranfer out that value. you can sent it on the item cost.
UMANG SHAHI
(student)
(98 Points)
Replied 19 December 2013
Completely agree with hojefa...
But also..
While treatment in branch a/c...
Branch A/c. Dr.
To goods sent to branch a/c.
(Being goods sent to branch).
The above entry will be done in the books of H.O.
while in branch books..it will be vice-versa.
Hope this will help you.
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