SCO: 209, First Floor, Sector-36/D.

Chandigarh (M): 0172-5017149, 9876149390,9915169925

BRANCH ACCOUNTING
DEBTORS SYSTEM In the Books of H.O.

ACCOUNTING SOLUTIONS

BRANCH ACCOUNT
Particulars To Branch Assets (O. Balance) -Stock -Debtors -Petty Cash -Prepaid Expenses -Furniture etc. To Goods Sent to Branch *** Less: Returns *** To Cash/bank A/c (Expenses) To General P & L A/c (Profit) To Branch Liabilities (Closing Bal.) -Outstanidng Expenses -Creditors etc. Rs. Particulars By branch Liabilities (Op. balance) -Outstanidng Expenses -Creditors etc. By cash/bank a/c (Remittance) -Cash shares -Collection from Debtors By General P & L A/c (Loss) By branch Assets (Closing Bal.) -Stock -Debtors -Petty Cash -Prepaid Expenses -Furniture etc. Rs.

**** *** ***

**** **** **** ****

**** ****

**** ****

**** ****

FINAL ACCOUNT SYSTEM BRANCH TRADING AND PROFIT & LOSS ACCOUNT Particulars To Opening stock (at cost price) To goods sent to Branch (at cost price) *** Less: Returns *** To direct Expenses To Gross Profit c/d To Indirect Expenses To net profit transferred to General Profit & Loss A/c Rs. **** Particulars By Sales: -Cash -Credit Less: Sales Returns By Closing stock (at cost price) By Gross Profit b/d By Miscellaneous Income *** *** *** *** Rs.

**** **** **** **** **** **** ****

**** **** **** **** **** ****

Particulars To Balance b/d (i.e. net assets of the branch at the Beginning of the year) To Goods Sent to Branch *** Less: Returns *** To Cash/Bank A/c (Expense) To General P & L A/c (Net Profit)

In the Books of H.O. BRANCH ACCOUNT (PERSONAL) Rs. Particulars By Cash/bank a/c (Remittance) -Cash Sales **** -Collection from Debtors **** **** **** **** By General P & L A/c (Net Loss) By balance c/d (i.e. Net assets of the branch at the end of the year)

Rs. *** ***

**** **** **** ****

STOCK AND DEBTORS SYSTEM Under this system, the H.O. maintains the following accounts for keeping record of branch transactions: 1. 2. 3. 4. 5. 6. Branch Stock Account. Branch Debtors Account. Branch Expenses Account. Branch Adjustment Account (For calculation of Gross Profit or Gross Loss). Branch Profit & Loss Account (For calculation of Net Profit or Net Loss). Goods Sent to Branch Account.

1 SCO:209,F.F. Sector-36/D Chandigarh. 0172-5017149,9876149390, 9915169925,

SCO: 209, First Floor, Sector-36/D. Chandigarh (M): 0172-5017149, 9876149390,9915169925

BRANCH STOCK ACCOUNT
To Balance b/d To Goods sent to Branch A/c Less: Returns to H.O. To Branch Debtors A/c (Sales Returns) To Branch Adjustment A/c (Bal. Fig) (Apparent Profit) Rs. **** *** *** **** **** By Cash (Cash sales) By branch Debtors A/c (Credit sales) By branch Adjustment A/c (Allowances) By Branch adjustment A/c (I.P. of Normal Loss) By Branch Adjustment A/c (Loading of abnormal loss) By Branch P & L A/c (Cost of Abnormal Loss) By Branch Adj. A/c (Loading of Transfer) BY Goods sent to Branch A/c (Cost of Transfer) By Balance c/d Rs. **** **** **** **** **** **** **** **** **** ****

ACCOUNTING SOLUTIONS

****

****

BRANCH DEBTORS ACCOUNT

To balance b/d To bank (Cheques dishonoured) To Branch Stock A/c -Credit sales Rs. **** **** By Cash A/c (Cash received from Debtors) By Branch Expenses A/c (Bad Debts) By Branch Stock A/c (Sales Returns) By Branch Adjustment A/c (Loading of Goods returned direct to H.O.) By Goods Sent to Bank A/c (Cost of goods returned Direct to H.O.) By Balance c/d Rs. **** **** **** ****

****

****

**** ****

BRANCH EXPENSES ACCOUNT

To Cash A/c (Total Exp.) To branch Debtors A/c Rs. **** **** **** By Branch Adjustment A/c (non recurring expenses) By Branch P & L A/c (b/f) Rs. **** **** ****

BRANCH ADJUSTMENT ACCOUNT

To Branch Stock A/c (Allowances) To Branch Stock A/c (I.P. of Normal Loss) To Branch Stock A/c (Loading of Abnormal Loss) To branch Stock A/c (Loading of Transfer) To Branch Debtors A/c (Loading of direct Returns to H.O.) To Branch Expenses A/c (Non Recurring Exp.) To Stock Reserve (C.S.) To Branch P & L A/c (Gross Profit) b/f Rs. **** **** **** **** **** By Stock Reserve (O.S.) By Goods Sent to Branch A/c (Loading) By Branch Stock A/c (Apparent Profit) Rs. **** **** ****

**** **** **** **** ****

BRANCH PROFIT & LOSS ACCOUNT

To Branch expenses To Branch Stock A/c (Cost of Abnormal. Loss) To General P/L A/c Rs. **** **** **** **** By Branch Adjustment A/c (Gross Profit) By Insurance claim Rs. **** **** ****

2 SCO:209,F.F. Sector-36/D Chandigarh. 0172-5017149,9876149390, 9915169925,