Branch accounts

Can anyone explain the contra entry in this ??

Attachments

IMG_20200914_075525.jpg

Screenshot_2020-09-14_075425.jpg

anamika vardhan

CA Inter

★ 1K+

14-Sep-20 07:57

Answers (4)

Its a dummy entry assuming that HO sent cash to branch and branch incurred the expense. It can be ignored as well.

Suraj Lakhotia

Admin

14-Sep-20 17:09

Suraj Lakhotia Admin

Its a dummy entry assuming that HO sent cash to branch and branch incurred the expense. It can be ignored as well.

If it is ignored won't the net profit in branch profit and loss account changed ??

anamika vardhan

CA Inter

★ 1K+

14-Sep-20 18:27

Expense to profit & loss would be debited.

Suraj Lakhotia

Admin

14-Sep-20 18:35

Suraj Lakhotia Admin

Expense to profit & loss would be debited.

Thank you

anamika vardhan

CA Inter

★ 1K+

14-Sep-20 18:40

IndigoLearn