IndigoLearn

Branch accounts

Can anyone explain the contra entry in this ??

Attachments

Screenshot_2020-09-14_075425.jpg

IMG_20200914_075525.jpg


anamika vardhan

anamika vardhan

CA Inter

1K+

14-Sep-20 07:57

21

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

Suraj Lakhotia

Admin

14-Sep-20 17:09

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

anamika vardhan

CA Inter

1K+

14-Sep-20 18:27

Expense to profit & loss would be debited.


Suraj Lakhotia

Suraj Lakhotia

Admin

14-Sep-20 18:35

Expense to profit & loss would be debited.

Thank you


anamika vardhan

anamika vardhan

CA Inter

1K+

14-Sep-20 18:40