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Branch accounts

Accountancy

Can anyone explain the contra entry in this ??

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anamika vardhan

anamika vardhan

CA Inter

1K+

14-Sep-20 07:57

401

Answers (4)

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


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

14-Sep-20 17:09

CA 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 ??


Thread Starter

anamika vardhan

anamika vardhan

CA Inter

1K+

14-Sep-20 18:27

Expense to profit & loss would be debited.


CA Suraj Lakhotia

CA Suraj Lakhotia

Admin

14-Sep-20 18:35

CA Suraj Lakhotia Admin

Expense to profit & loss would be debited.

Thank you


Thread Starter

anamika vardhan

anamika vardhan

CA Inter

1K+

14-Sep-20 18:40

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