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Saathik Nj

Saathik Nj

CA Inter

0

27-Jun-20 13:46

14

Branch accounts

Why is bank/cash account not opened in illustration 8 while the same is opened in illustration 4 in icai material?

Answers (3)

Best Answer

ruchi lahoti

ruchi lahoti

Moderator

27-Jun-20 14:14

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.