CA.

PARVEEN JINDAL
 COVERAGE OF TOPIC
 TOPIC 1: JOURNAL ENTRIES

 TOPIC 2: ACCOUNTING FOR BRANCH FIXED ASSETS

 TOPIC 3: ACCOUNTING FOR INTER BRANCH TRANSFERS

 TOPIC 4: RECONCILIATION OF ACCOUNTS

 TOPIC 5: BRANCH FINAL ACCOUNTS

 TOPIC 6: CONSOLIDATION OF ACCOUNTS

 TOPIC 1: JOURNAL ENTRIES
SITUATION H.O.BOOKS BRANCH BOOKS
Goods sent by head Branch Account Dr. GFH Account Dr.
office to branch To GSTB To H.O
Goods Returned by GSTB Account Dr. H.O. Account Dr.
Branch to H.O To Branch To H.O
Goods sold by No Entry Cash Account Dr.
Branch on cash & Debtors Account Dr.
Credit To Sales
Goods purchased by No Entry Purchases Dr.
Branch on Cash & To Cash
Credit To Creditors
Collection made by No Entry Bank Account Dr.
Branch from its To Debtors
debtors
Payment made by No Entry Creditors Account Dr.
Branch to its Creditors To Bank

Expenses paid by No Entry Expenses Account Dr.

 TOPIC 1: JOURNAL ENTRIES
SITUATION H.O.BOOKS BRANCH BOOKS
Branch Expenses paid Branch Account Dr. Expenses Account Dr.
by Head Office To Cash To H.O
Collections made by Cash Account Dr. H.O. Account Dr.
Head Office Directly To Branch To Debtors
from Branch Debtors
Payment made by Branch Account Dr. Creditors Account Dr.
Head office Directly to To Cash To H.O
Branch Creditors
Remittances made by Cash Account Dr. Head Office Dr.
Branch to Head Office To Branch To Cash

Cash sent by Head Branch Account Dr. Cash Account Dr.

office to Branch To Cash To H.O.
 TOPIC 2: BRANCH FIXED ASSETS
SITUATION H.O.BOOKS BRANCH BOOKS
1) Branch Assets No Entry Assets Account Dr.
purchased by Branch To Cash
2) Branch Assets Branch Account Dr. Assets Account Dr.
purchased by Head To Cash To Head Office
Office
3) Depreciation in 1 & 2 No Entry Depreciation Dr.
in above To Assets

4)Branch Assets Assets Account Dr. H.O Account Dr.

purchased by Branch but To Branch To Cash
Assets A/c maintained by
H.O
5)Branch Assets Assets Account Dr. No Entry
purchased by H.O and To Cash
Assets A/c’ are also
maintained by H.O.
6)Depreciation on 4 &5 Branch Dr. Depreciation Dr.
To Assets To H.O
 TOPIC 3: INTER BRANCH
TRANSACTIONS
SITUATION H.O.BOOKS BRANCH BOOKS
If cash is sent by one Receiving Branch Dr. Sending Branch:
branch to other branch To Sending Branch H.O Account Dr.
To Cash
Receiving Branch:
Cash Account Dr.
To H.O
If goods are sent by one Receiving Branch Dr. Sending Branch:
branch to other branch To Sending Branch H.O Account Dr.
To GFH
Receiving Branch:
GFH Dr.
To H.O
NOTE: IN THE BOOKS OF HEAD OFFICE, NET ENTRY HAS BEEN
RECORDED. FOR DETAIL UNDERSTANDING, STUDENTS MAY REFER
CLASS NOTES
TOPIC 4: RECONCILIATION OF
A/C’S
In case, Balance in Branch Account in the books of Head office and
Balance in Head Account in the books of Branch do not match, then
we have to reconcile the balances in accounts. There may be two
reasons for such difference in respective books:
Reason A: Transit items (i.e., cash in transit, goods in transit)
Reason B: Unrecorded Items

Treatment A: Transit Items should always be adjusted in the

books of Receiving Party. In most of cases, GIT is recorded in
the books of Branch and CIT in the books of Head office.
Treatment B: Unrecorded Items should always be recorded in
the books of such party in which Accounting remains pending.
It’s a type of rectification in books of accounts.
 TOPIC 5 & TOPIC 6
Please refer class notes only……………………these topics can
not be summarized in PPT

BEST OF LUCK…………….CA.PARVEEN JINDAL