FINANCIAL ACCOUNTING SUBHASH KUMAR ASSISTANT PROFESSOR GUEST DEPT

FINANCIAL ACCOUNTING SUBHASH KUMAR ASSISTANT PROFESSOR (GUEST) DEPT. OF COMMERCE CMB COLLEGE DEORH GHOGHARDIHA (MADHUBANI)

BRANCH ACCOUNTS B. COM 1 ST YR, HONOURS PAPER-1 ST , UNIT-II, LEC-V

ACCOUNTING RECORD OF THE BRANCH RECEIVING GOODS FROM HEAD OFFICE AT COST PRICE & MAKING CASH & CREDIT SALES: Journal entries in the books of head office relating to branch office: - A) For opening balance of debtors: - Branch account to opening debtors account ( Being opening debtors are shown) Dr. B) For receipt of cash receivable: Cash account to branch account ( Being cash received from bills receivable. ) Dr.

C) For closing balance of branch debtors: Debtors of branch account Dr. to branch account (Being closing debtors of branch are shown) JOURNAL ENTRIES RELATING TO DEBTORS: - A) For opening debtors: - Debtors account Dr. to opening debtors account ( Being opening debtors shown) B) For cash receive from debtors and discount allowed: Cash account Dr. Discount account Dr. to debtors account ( Being cash received and discount allowed. )

C) For bad debts: Bad debt account to debtors account ( Being bad debt treated) Dr. D) For sales returns: Sales returns account to debtors account ( Being sales returns treated. ) Dr.

E) For bills receive from debtors: Bills receivable account to debtors account ( Being bills receivable from relating debtors. ) Dr. F) For dishonour of bills: Debtors account to bills receivable account ( Being bills dishonoured. ) Dr.

G) For credit sales: Debtors account to sales account (Being credit sales treated. ) Dr. CLOSING STOCK = OPENING STOCK + PURCHASE –(COST OF GOOD SOLD)

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