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Branch accounts ( incorporation of branch balance in head office books)

Accountancy

Can anyone explain this concept?

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Ambika Devi

Ambika Devi

CA Inter

0

23-Mar-23 11:20

376

Answers (2)

In a branch, at the end of the year all the balances has to be transferred to the Head Office as the HO has many branches and all these have to be accounted for and only then you will have a whole picture of the firm/entity. In a ordinary entity we would prepare final accounts and then transfer the closing balances to the next Financial Year. The process will be the same in a branch till the preparation of trial balance. After preparation of trial balance, there are 2 options to transfer the balance to HO, 1) Prepare a Trading P&L A/c and Balance sheet of every branch, 2) Transfer the balances of all the branch items to HO and then prepare a consolidated(total/merged) Trading P&L A/c & Balance sheet in HO books.


Dharani Chakravarthi

Dharani Chakravarthi

CA Inter

8K+

23-Mar-23 18:38

Thank you so much


Thread Starter

Ambika Devi

Ambika Devi

CA Inter

0

23-Mar-23 18:45

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