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

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

Thank you

anamika vardhan

CA Inter

★ 1K+

14-Sep-20 18:40