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Why is bank/cash account not opened in illustration 8 while the same is opened in illustration 4 in icai material?
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Best Answer
Branch cash account is prepared if the branch is allowed to incur expenses out of its cash collections. In the illustration 4 the expenses are partly recorded by HO and partly by BO. Whereas, in illustration 8 , Branch remits all cash received into the head office account.
ruchi lahoti
Branch cash account is prepared if the branch is allowed to incur expenses out of its cash collections. In the illustration 4 the expenses are partly recorded by HO and partly by BO. Whereas, in illustration 8 , Branch remits all cash received into the head office account.
In illustration 10 why is the difference in invoice and cash price of goods invoiced to outlet not credited to stock reserve a/c?
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