Branch Accounting – Concepts, Scenario, Journals

This post helps you to understand How to do Branch Accounting in GST and explains the concepts, scenarios and Journal Entries to be passed in Branch Accounting. 

 

 

There are two ways of maintaining Branch Accounts.

1. Where HO maintains accounts of the Branch
2. Where HO and Branch maintain separate accounts

 

How to do Branch Accounting?

1. Create Head office as a separate Branch from Settings tab
2. Create Branch from settings tab

 

Scenario	In Pondy Books	In Vilupuram Books
	Create Goods Sent to Vilupuram a/c Create Vilupuram Current a/c	Create Goods received from Pondy a/c Create Pondy Current a/c Create Vilupuram Cheques in Hand a/c
When goods are being sent to Vilupuram	Villupuram Current a/c Dr To Goods Sent to Vilupuram a/c	Goods recd from Pondy a/c Dr To Pondy Current a/c
When the Branch (Vilupuram) sells goods to customer	No entry	Debtor a/c dr To Sales a/c
When Branch(Vilupuram) receives cheque from customer		Vilupuram Cheques in Hand a/c Dr To Debtor a/c
When the cheque is deposited into HO Bank Account		Pondy Current a/c Dr To Vilupuram Cheques in Hand a/c
When Pondy receives credit of the deposit in Bank account	Bank a/c Dr To Vilupuram Current a/c

In Pondy Books

 

Goods sent to Vilupuram A/c
	By Vilupuram current a/c xxx
xxx	xxx

 

 

Vilupuram Current A/c
To Goods sent to Vilupuram a/c  xxx	By Bank  xxx
xxx	xxx

 

Bank a/c
To Vilupuram Current a/c xxx
xxx	xxx

 

In Vilupuram Books

 

Goods recieved from Pondy A/c
To Pondy Current a/c  xxx
xxx	xxx

 

Pondy Current A/c
By Cheques in Hand a/c  xxx	By Goods recieved from Pondy a/c xxx
xxx	xxx

 

Vilupuram Cheques in Hand  a/c
To Vilupuram Debtors  xxx	By Pondy current a/c  xxx
xxx	xxx

 

Vilupuram Debtor  a/c
To Vilupuram Sales  xxx	By Vilupuram Cheques in Hand  xxx
xxx	xxx

 

Vilupuram Sales  a/c
	By Vilupuram Debtors a/c  xxx
xxx	xxx

 

Scenario	In Pondy Books	How to do it?
	Create Goods Sent to Vilupuram a/c Create Vilupuram Current a/c	Create a Control Ledger – Goods Sent a/c Create a Customer Ledger – Vilupuram current a/c
When goods are being sent to Vilupuram	Vilupuram Current a/c Dr To Goods Sent to Vilupuram a/c	Goods recd from Pondy a/c Dr To Pondy Current a/c
When the Branch(Vilupuram) sells goods to customer	No entry	Debtor a/c dr To Sales a/c
When Branch(Vilupuram) recieves cheque from customer		Vilupuram Cheques in Hand a/c Dr To Debtor a/c
When the cheque is deposited into HO Bank Account		Pondy Current a/c Dr To Vilupuram Cheques in Hand a/c
When Pondy recieves credit of the deposit in Bank account	Bank a/c Dr To Vilupuram Current a/c

 

Scenario	In Vilupuram Books
	Create Goods received from Pondy a/c Create Pondy Current a/c Create Vilupuram Cheques in Hand a/c
When goods are being sent to Vilupuram	Goods recd from Pondy a/c Dr To Pondy Current a/c	Bill
When the Branch(Vilupuram) sells goods to customer	Debtor a/c dr To Sales a/c	Invoice Customer name is Pondy Current a/c Account Head is Goods recieved a/c
When Branch(Vilupuram) recieves cheque from customer	Vilupuram Cheques in Hand a/c Dr To Debtor a/c	Receipt Mode of payment is Cheques in Hand Received from – Customer Name
When the cheque is deposited into HO Bank Account	Pondy Current a/c Dr To Vilupuram Cheques in Hand a/c
When Pondy recieves credit of the deposit in Bank account

 

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