Question

How can i entry asset purchased in head office but use in branch?

Answer 1

Hello!!



Accounting Entries by Head Office!

Generally when branches are small their accounts are maintained by the head office.

If the branch is big and, specially, if it carries on manufacturing operations also, it usually maintains its own books of account, extracts own trial balance and prepares its own trading and profit and loss account and balance sheet.

The head office must, however, present one consolidated balance sheet for the benefit of the shareholders and the outside world.

The head office will maintain, in its books, “Branch Account” to which goods or cash sent will be debited: When cash is received from the branch, the Branch Account will be credited.


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