BRANCH

ACCOUNTING
INTRODUCTION :
 Inorder to increase the sales , business houses
are required to market their products over a
larger territory and may generally split their
business into certain divisions or parts . If the
various parts are located in different parts of the
city , different cities or in different countries like
germany , australia etc , these are known as
branches . Head office controls the activities of
various branches .
 OBJECTIVES OF BRANCH
ACCOUNTING :

 The main object of keeping branch accounts is

dependent on the nature of business and specific
need of a particular branch.
 To know the profit or loss of each branch .
 To ascertain financial position of each branch on a
particular date.
 To know the cash and goods requirement of the
various branches.
 To evaluate the progress and performance of each
branch .
 The transaction between headquarters and branch
offices
 The type of current transactions between headquarters
and branch The establishment of new branches
Transfer between headquarters and branch stock in
trade
 Different types of transactions under the account
settings
 When setting up a new set of branches between the
subjects
Headquarters set up "branch exchange"
Branches set up "between the headquarters”
 Transfer between headquarters and branch stock in
trade
Headquarters set up "branches Stock delivered"
Branches set up "headquarters shipped inventory."
4
 To calculate commission for payment to the
managers if based on profits of branch .
 To know the profitability of each branch and
type of business for expansion of the business .
 To give concrete suggestions for the
improvement in the working of various
branches .
 To meet the requirements of specific
enactments as all branches of a company must
keep the accounts for audit purposes .
TYPES OF BRANCHES :
 (A) . Branches not keeping full system of
accounting (dependent branches) .
 (B) . Branches keeping full system of accounting
(independent branches) .
 (C) . Foreign branches .
 Features of dependent branches are :
 Such branches sell only those goods which are
received from the head office and are not usually
allowed to make purchases in the open market .
 Goods are supplied by the head office to such
branches either at cost price or at invoice price .
 All expenses of the branch such as rent , salary or staff
, advertisement etc are paid by the head office.
 Petty expenses such as cartage , entertainments etc
are paid out of petty cash book balance .
 The amount received from cash sales or cash received
from debtors is either remitted to the head office daily
or deposited in the account of head office at some
local bank .
 The branch manager is normally expected to sell the
goods for cash only but he may be authorized to sell
goods on credit in certain cases .
 Such branches do not maintain their own books of
account . All records are maintained by the head office
.
 8

Goods in Transit (GIT)

 Goods were sent by the Head Office
before the end of the financial period,
but received by the branch after the end
of the financial period
 GIT
=Goods Sent to Branch –
Goods received from HO
 9

Remittances/Cash in Transit
(CIT)
 Theremittance or cash was remitted by
the branch before the end of the
financial period, but was received by the
Head office after the end of the financial
period
 CIT= Remittance to Head Office –
Remittance from Branch
Accounting treatment of the
new branch accounting
treatment
Headquarters account Branch account
Between branches Headquarters contacts

15 15 000
000

10
The treatment of Headquarters transfering goods to the
branch

Headquarters account
Transction between branches Delivery of branch
inventory

8 000 8 000

11
 Branch account
transported to the headquarter headquarters
contacts

8 000
8 000

12
 TREATMENT OF
TRANSACIONS IN
THE BOOKS OF
HEAD OFFICE
AND
BRANCH
 14

Transactions Head office (HO) Branch books

books

1 Opening Stock Dr HO Trading Dr Branch Trading

Cr Stock (opening Cr Stock (Opening
stock)[at cost] stock)[at Cost or
Cost+profit]
2 Goods purchased Dr No entry
directly from HO Purchase(Trading)
suppliers[at cost] Cr Creditors
3 Goods purchased NO entry Dr
directly from Branch Purchase(trading)
suppliers [at cost] Cr Creditors
 15

Transactions Head office Branch books

(HO) books
4 Goods sent from Dr Branch a/c Dr Good received
HO to Branch Cr Goods sent to from HO
[cost+profit] Branch Cr Ho a/c

5 Goods returned Dr Goods sent to Dr HO a/c

from Branch to HO branch Cr Good received
Cr Branch a/c from HO

6 Cash sales/Credit Dr HO Dr Branch cash/

sales Cash/Debtors debtors
Cr HO Sales Cr Branch sales
 16

Transactions Head office Branch books

(HO) books
7 Closing stock Dr Stock(Closing) Dr Stock (Closing)
Cr HO Trading Cr Branch Trading
good purchased directly
from Branch suppliers [at
cost] & goods received
from HO [cost+profit]
8 Gross profit on Dr HO Trading Dr Branch Trading
trading Cr HO profit and Cr Branch profit and
loss loss
9 HO expenses paid Dr Expenses (P&L) No entry
by HO Cr Cash/Bank
 17

Transactions Head office Branch books

(HO) books
10 Branch expenses Dr Branch a/c Dr Expenses (P&L)
paid by Head Office Cr Cash/Bank Cr HO a/c

11 Branch expenses No entry Dr Expenses (P&L)

paid by Branch Cr Cash/Bank

12 Administrative Dr Branch a/c Dr Branch P&L

charges for services Cr HO P&L Cr HO a/c
rendered by HO to (Income)
Branch
 18

Transactions Head office (HO) Branch books

books
13 Provision for Increase in provision No entry
Unrealized Profit Dr HO P&L
(Branch & Goods in Cr Prov. For Unrealized
profit
Transit)[cost+profit]
Decrease in provision
Reverse
14 Goods in Dr Goods in Transit NO entry
Transit(GIT) Cr Branch a/c
15 Cash in Transit Dr Cash in Transit No entry
(CIT) Cr Branch a/c
Transactions Head office (HO)
19
Branch books
books
16 Profit made by Dr Branch a/c Dr Branch P&L
the branch Cr Retained profit Cr HO a/c

17 Profit made by Dr P&L No entry

HO Cr Retained profit
18 Cash Dr Bank Dr HO a/c
remittances from Cr Branch a/c Cr Bank
the branch Or Or
Dr Bank Dr Remittance to HO
Cr remittance from Cr Bank
branch Dr HO a/c
Dr Remittance from Cr Remittances to HO
branch
Cr Branch a/c
 ACCOUNTING RECORDS FOR HEAD OFFICE OR SYSTEM OF
ACCOUNTING FOR BRANCH

 (1) . DEBTORS SYSTEM (synthetic method) .

 (2) . FINAL ACCOUNT SYSTEM .
 (3) . STOCK AND DEBTORS SYSTEM (analytical
method) .
 (4) . WHOLESALE BRANCH SYSTEM .
 (1) .DEBTORS SYSTEM :
 Thissystem is adopted generally in those branches
which are fairly small in size . Under this system ,
head office opens a separate account for each
branch in order to record all transactions relating to
that branch . This account is a nominal account in
nature and is prepared to calculate profit and loss for
each branch . Goods supplied by the branch may be
either at cost price or at cost plus profit . The main
defect in this method is that it does not provide full
information for analysis of branch profit and loss .
ILLUSTRATION
 Invoicing goods to branch at cost .
 From the following particulars relating to delhi
branch for the year ending 31st march 2012 ,
prepare necessary accounts in the head office
books :
 Balances as on 1-4-2011 :
 Stock at branch = 15000
 Debtors at branch = 30000
 Petty cash at branch = 300
 Goods sent to branch during the year = 252000
 Remittance from the branch :
 For cash sales = 60000
 Received from debtors = 210000
 Total = 270000
 Goods returned by the branch = 2000
 Credit sales during 2011-2012 = 228000
 Cheques sent to branch during the year :
 For salaries = 9000
 For rent & taxes = 1500
 For petty cash = 1100
 Total = 11600
 Balances as on 31-3-2012
 Stock at branch = 25000
 Petty cash = 200
 Debtors = 48000
 DELHI BRANCH ACCOUNT for the year ended 31-3-2012 :

Particulars Amount Particulars Amoun

t
To branch stock a/c 15000 By cash a/c :
To branch debtors a/c 30000 Cash sales
60000
To branch petty cash a/c 300 Received from debtors 270000
210000
To goods sent to branch By branch stock a/c 25000
252000
Less : returns to head 250000 By branch debtors a/c 48000
office 2000
To bank a/c (expenses) : By branch petty cash 200
Salaries
Rent & taxes
9000
1500
Petty cash 11600
1100
To general p&l a/c 36300
 BRANCH STOCK A/C :
PARTICULARS AMOUN PARTICULARS AMOUN
T T
To balance b/d 15000 By Delhi branch a/c 15000
(transfer)
To Delhi branch a/c 25000 By branch c/d 25000

BRANCH DEBTORS A/C

PARTICULARS AMOUN PARTICULARS AMOUN

T T
To balance b/d 30000 By Delhi branch a/c 30000
(transfer)
To Delhi branch a/c 48000 By balance c/d 48000
 INVOICING PRICE METHOD
 ILLUSTRATION
 Unique stores ltd. has an old established branch
at Kanpur . Goods are invoiced to branch at 20%
profit on invoice price. All expenses are paid by
head office except petty expenses.
 Stock on 1-1-2011(invoice price) = 15000
 Sundry debtors = 9000
 Cash in hand = 400
 Office furniture = 1200
 Goods supplied by head office (invoice price) :
 Goods returned to head office = 1000
 Goods returned by debtors = 480
 Debtors at the end = 8220
 Cash sales = 50000
 Credit sales = 30000
 Discount allowed = 300
 Expenses paid by head office :
 Rent = 1200
 Salary = 2400
 Stationery and printing = 300
 Petty expenses paid by branch manager = 280
 Stock on 31-12-2011 (invoice price) = 14000
 Provide depreciation on furniture @10% .
 BRANCH ACCOUNT :
PARTICULARS AMOU PARTICULARS AMOUN
NT T
To branch stock a/c 15000 By cash (remittances) :
To branch debtors a/c 9000 Cash sales
50000
To branch cash-in-hand 400 Cash from debtors (1) 80000
30000
To branch office furniture 1200 By branch stock a/c 14000
a/c
To goods sent to branch a/c By branch debtors a/c 8220
Rent
80000 (20/100 x 15000) 3000
1200
Less : returns to h.o. 79000 By branch furniture 1080
Salary
1000 By goods sent to branch
a/c(1200-120)
2400 a/c
To bank a/c : By stock reseve a/c
Stationery and printing 3900 (20/100 x 79000) 15800
300
To stock reserve a/c By cash-in-hand (400-280) 120
(20/100 x 14000) 2800
To general p & l a/c 10920
  Working note - 1 :
 Calculation of cash received from debtors .

DEBTORS ACCOUNT :
PARTICULARS AMOUNT PARTICULARS AMOUNT

To balance b/d 9000 By sales return a/c 480

To sales (credit) a/c 30000 By cash (bal.fig) 30000

By discount a/c 300

By balance c/d 8220

39000 39000
(2). FINAL ACCOUNT
SYSTEM :
 According to this system , the profit and loss
made by the branch is determined by preparing
branch trading and profit & loss a/c at cost price .
It should be carefully noted that all expenses
whether paid by the head office or by the branch
are debited to trading and profit & loss a/c
prepared for the branch .
 Illustration
 A Delhi merchant has a branch at Chennai to
which he charges the goods at cost plus 25% .
The branch keeps its own sales ledger and remits
all cash received to the head office everyday .
 Stock 1-1-2011 at invoice price = 11000
 Debtors = 100
 Petty cash = 100
 Cash sales = 2650
 Goods sent to branch at invoice price = 20000
 Collection on ledger accounts = 21000
 Goods returned to head office at invoice price
= 300
 Bad debts = 300
 Allowances to customers = 250
 Return inwards = 500
 Cheques sent to branch :
 Rent = 600
Salary & other expenses = 900
Wages = 200
Stock 31-12-2011 at invoice price = 13000
Debtors = 2000
Petty cash (including) :
Misc. income = 25
Not remitted = 125

BRANCH TRADING & PROFIT & LOSS

Account for the year ending 31-12-2011
PARTICULARS AMOU PARTICULARS AMOU
NT NT
To opening stock (11000 – 8800 By sales :
2200)
To goods sent to branch a/c Cash
2650
(20000 – 4000 ) Credit
16000 23950
Less : returns to head office 15760 Less : returns 26100
(300-60) 240 500
Wages 200 Closing stock (13000-2600) 10400
To bad debts
Rent 300
600 Accrued income 25
Allowances 250
Salaries and other expenses 900
rent
Net profit 9715

11765 11765
 BRANCH ACCOUNT (PERSONAL)
ACCOUNT :
PARTICULARS AMOU PARTICULARS AMOU
NT NT

To opening balances : By remittances :

Stock 8800 (2650 + 21000) 23650

Debtors 100 Balance c/d
Petty cash 100 Stock 10400

Goods sent to branch Debtors 2000

16000

Less : returns to h.o. 15760 Petty cash 125

240

Bank (expenses) 1700

profit 9715
36175 36175
 (3). STOCK AND DEBTORS
SYSTEM :
 There is yet another method of calculating profit
and loss of a branch which is popularly known as
(stock & debtors system) or (analytical method) .
It is an elaborate method of keeping branch
accounts and is considered very useful where
the branch turnover is sufficiently large and
where a greater degree of control is sought to be
exercised by the head office over the branch .
 (a) . Goods charged to branch at cost price .
 ILLUSTRATION
 Stock 1-1-2011 = 15000
 Stock 31-12-2011 = 14000
 Debtors 1-1-2011 = 25000
 Debtors 31-12-2011 = 35000
 Cash at branch 1-1-2011 = 500
 Cash sent to branch = 1500
 Goods sent to branch = 50000
 Goods returned by branch = 500
 Cash sales = 32000
 Credit sales = 58000
 Allowances to customers = 300
 Returns from customers = 600
  Bad debts written off = 500
 Discount allowed to customers = 2000
 Remittance from branch = 70000
 Rent & taxes = 1500
 Salaries = 5000
 General trade charges = 1500
 Normal loss of goods due to wastage = 1000
 Abnormal loss of goods due to pilferage = 2000

BRANCH STOCK ACCOUNT :

PARTICULARS AMOU PARTICULARS AMOU
NT NT
To balance b/d 15000 By cash a/c (sales) 32000
To goods sent to branch a/c By branch debtors 58000
50000 a/c(credit sales)
Less : returns to h.o. 49500 By branch p & l a/c
500
To branch debtors a/c (pilferage of goods) 2000
(sales return) 600 By balance c/d 14000
To branch p & l a/c 40900

106000 106000

BRANCH DEBTORS ACCOUNT :

PARTICULARS AMOU PARTICULARS AMOU
NT NT
To balance b/d 25000 By branch cash a/c (bal.fig) 44600
To branch stock a/c 58000 Branch expenses :
Allowances
 Discount
2000
Bad debts 2800
500
By branch stock a/c (sales 600
return)
By balance c/d 35000

83000 83000

BRANCH CASH ACCOUNT :

PARTICULARS AMOU PARTICULARS AMOUN
NT T

To balance b/d 500 By branch expenses :

To general cash a/c 1500 Rent & taxes

1500

To branch stock a/c 32000 Salaries

5000
 GOODS SENT TO BRANCH ACCOUNT :
PARTICULARS AMOUN PARTICULARS AMOUN
T T
To purchases a/c (transfer) 49500 By branch stock a/c 49500

BRANCH EXPENSES ACCOUNT :

PARTICULARS AMOUN PARTICULARS AMOUN
T T
To branch cash a/c By branch p & l a/c 10800
Rent & taxes
1500
Salaries
5000
General trade charges 8000
1500
To branch debtors a/c 2800

10800 10800
 BRANCH PROFIT & LOSS Account
PARTICULARS AMOUN PARTICULARS AMOUN
T T
To branch expenses : By branch stock a/c
Allowances 300 ( Gross profit ) 40900
Discount 2000
Bad debts 500
Rent & taxes 1500
Wages & salaries 5000
General trade charges 1500
To branch stock
( cost of goods pilfered ) 2000
Net profit transferred to
general
P & l a/c 28100

40900 40900
 (b) . Goods charged to branch at selling price :
 ILLUSTRATION
 Crown industries has a branch at Madurai to which
goods are invoiced at cost plus 25% . Branch
expenses are paid direct from head office and the
branch remits all cash to head office .
 Goods received from head office at invoice price=
60000
 Returns to head office at invoice price = 1200
 Branch stock on 1-1-2011 at invoice price = 6000
 Cash sales = 20000
 Credit sales = 36000
 Branch debtors on 1-1-2011 = 7200
  Cash collected from debtors = 32000
 Discount allowed to debtors = 600
 Bad debts in the year = 400
 Goods returned by debtors to branch = 800
 Rent , rates and taxes at branch = 1800
 Branch office expenses = 600
 Branch stock at invoice price on 31-12-2011 =
12000 BRANCH STOCK ACCOUNT :

PARTICULARS AMOU PARTICULARS AMOU

NT NT

To balance b/d 6000 By cash a/c 20000

To goods sent to branch a/c By branch debtors a/c 36000

60000
return)
To branch adjustment a/c
(loading of surplus) 480
25/125x2400
To branch p & l a/c
(cost of surplus) 1920

68000 68000

BRANCH DEBTORS ACCOUNT :

PARTICULARS AMOUN PARTICULARS AMOU
T NT
To balance b/d 7200 By cash a/c 32000
To branch stock a/c (credit 36000 By branch expenses a/c
sales)
Discount
600
Bad debts 1000
400
By branch stock a/c (sales 800
 BRANCH EXPENSES ACCOUNT :
PARTICULARS AMOUN PARTICULARS AMOUN
T T
To cash a/c 2400 By branch p & l a/c 3400
To branch debtors 1000
3400 3400
BRANCH ADJUSTMENT ACCOUNT :

PARTICULARS AMOUN PARTICULARS AMOUN

T T
To stock reserve a/c 2400 By stock reserve a/c 1200
To branch p & l a/c (gross 11040 By goods sent to branch 11760
profit) a/c
By branch stock a/c 480

13440 13440
 BRANCH PROFIT & LOSS ACCOUNT :
PARTICULARS AMOUN PARTICULARS AMOUN
T T
To branch expenses a/c 3400 By branch adjustments a/c 11040
To general p & l a/c 9560 By branch stock a/c 1920

12960 12960

(c) . Goods sent to branch at cost plus certain

fixed percentage on cost :
Goods supplied by the head office to the branch may
be invoiced at cost plus a fixed percentage of profit on
cost . Here too , the ‘load’ included in the value of
opening stock , closing stock and goods sent to branch
minus the returns from branch to
 head office is treated in the same way as in the
case of branch , where the goods are supplied by
the head office at selling price .
 ILLUSTRATION
 M/s brute ltd . invoices goods to their various
branches at cost plus 25% . Branches sell the
goods for both cash and credit . Branch expenses
are paid by the head office .
 Branch stock at i.p. on 1-1-2011 = 8000
 Branch debtors = 4000
 Branch petty cash = 500
 Branch furniture = 6000
 Goods invoiced to branch during 2011 = 22000
 Cheques sent to branch during 2011 :
 Salaries = 2000
 Rent = 1000
 Petty cash = 300
 Cash sales by branch = 10000
 Cash collected from debtors by branch = 9000
 Goods returned by branch = 800
 Credit sales by branch = 25000
 Goods returned by branch debtors to branch =
400
 Discount allowed to debtors = 500
  Bad debts = 100
 Branch stock at invoice price on 31-12-2011 =
10000
 Branch petty cash = 200
 Furniture is to be depreciated at 10% .

BRANCH STOCK ACCOUNT :

PARTICULARS AMOU PARTICULARS AMOU
NT NT
To balance b/d 8000 By cash a/c (sales) 10000
To goods sent to branch a/c By branch debtors a/c 25000
22000
Less : returns 21200 By bal c/d 10000
800
To branch debtors a/c(sales 400
return)
To branch adjustment a/c 15400
(apparent profit)
 BRANCH DEBTORS ACCOUNT :
PARTICULARS AMOUN PARTICULARS AMOUNT
T
To bal b/d 4000 By cash a/c 9000
To branch stock a/c (credit 25000 By branch stock a/c (sales 400
sales) return)
By branch expenses a/c
Discount
500
Bad debts 600
100
By bal c/d 19000
BRANCH ADJUSTMENT ACCOUNT :
29000 29000

PARTICULARS AMOUN PARTICULARS AMOUN

T T
To stock reserve a/c 2000 By stock reserve a/c 1600
To branch p & l a/c (gross 19240 By goods sent to branch 4240
profit) a/c
By branch stock a/c 15400
 BRANCH PROFIT & LOSS A/C
PARTICULARS AMOUN PARTICULARS AMOUN
T T
To salaries a/c 2000 By branch adjustment a/c 19240
To rent a/c 1000
To expenses a/c 600
(300+500-200)
To branch expenses 600
(discount & bad debts )
To depreciation a/c 600
To general p & l a/c (net 14440
profit)
GOODS SENT TO BRANCH ACCOUNT :
19240 19240
PARTICULARS AMOUN PARTICULARS AMOUN
T T
To branch adjustment a/c 4240 By branch stock a/c 21200
To trading a/c 16960

21200 21200
 BRANCH EXPENSES ACCOUNT :
PARTICULARS AMOUN PARTICULARS AMOUN
T T
To branch debtors a/c 600 By branch profit & loss a/c 600
(4). WHOLESALE SYSTEM OF ACCOUNTING
 Sometimes head office also sells goods at
retail or list price besides sending the
goods to branches at wholesale prices .
The difference between the wholesale
and retail price will be the profit made by
the branch . Suppose if an article costs to
head office 100/- and it is supplied to the
branches at 160/- at wholesale price but
both head office and branches sell goods
at 200/- , then , profit made by the branch
will be 40/- (i.e. 200-160) and not
100(200-100) .
ILLUSTRATION
A head office sends goods to its branch at 20% less
than the list price . Goods are sold to customers at
cost plus 100% .
head office
branch
Opening stock at cost 40000
32000
(wholesale price in case of
branch)
Purchases 200000 -
Goods sent to branch 96000 -
Sales 170000 80000
Sundry expenses 14000
8000
 TRADING AND PROFIT & LOSS A/C :
PARTICULARS H . O. BRAN PARTICULARS H . O. BRAN
CH CH
To opening stock 40000 32000 By sales 17000 80000
0
To purchases 20000 By goods sent to 96000
0 branch
To goods from head 96000 By closing stock (1) 95000 64000
office
To gross profit c/d 12100 16000
To sundry expenses 0
14000 8000 By gross profit b/d 12100 16000
36100 144000 0
36100 144000
To stock reserve 0 By stock reserve 0
against against
Closing branch Opening branch
stock stock
(60/160x64000) 24000 (32000x60/160) 12000
By net profit 95000 8000
13300 16000 13300 16000
 Working note :

 (1). Calculation of closing stock h.o. branch

 Opening stock at cost 40000 32000
 (wholesale price in case of branch)
 Purchases at cost 200000 -
 Goods from h . o. (wholesale price) - 96000
 Less : cost of goods sent to branch 60000
 (96000x100/160)
 Less : cost of sales to outsiders 85000 64000
 (wholesale price in case of branch)
 95000
64000
 BRANCHES KEEPING FULL SYSTEM OF
ACCOUNTING :

 Branches keeping full system of accounting or

independent branches are those branches which
also purchase goods from the market besides
getting the goods from the head office . They can
also supply goods to the head office , pay expenses
from the cash realized and deposit cash in their
own account . Such branches keep complete set of
double entry books and prepare their own trial
balance , trading and profit & loss account and
balance sheet . Such branches open head office
account in their books .
 ILLUSTRATION
A and co. ltd having its head office at Delhi with
branches at Allahabad and lucknow . Pass the
necessary journal entries as per the following
transactions which took place during the year .
 (a) . Remittances of 4500/- made by lucknow branch
to its head office on 30th December , received by head
office on 5th January (next year) .
 (b) . Goods valuing 2200/- dispatched by Allahabad
branch on 27th December , under instructions from
the head office and received by the lucknow branch
on 30th December .
 (c) . Depreciation amounting to 1100 on lucknow
branch fixed assets when accounts of such assets
are maintained at the head office .
 (d) . Goods worth 9000/- dispatched by head office
to Allahabad branch on 30th December , received
by that branch on 7th January (next year) .
 (e) . Lucknow branch paid 400/- dividend to a local
shareholder on behalf of the head office .
 (f) . A sum of 600/- being arrears of call money
was received by the Allahabad branch from a
shareholder in November but was not
communicated to the head office till 3rd January
(next year ) .
 Lucknow branch draws a bill receivable for 5500/- on
Allahabad branch which sends its acceptance .

In the books of Head Office /JOURNAL ENTRIES

SR.N PARTICULARS L.F DEBIT CREDIT
O. .
a. Cash in transit a/c dr. 4500
to lucknow branch a/c 4500
(cash remitted by lucknow branch still in
transit)

b. Lucknow branch a/c dr. 2200

to Allahabad branch a/c 2200
(being goods transferred from Allahabad
branch to lucknow branch under our
instructions)

c. Lucknow branch a/c dr. 1100

to lucknow fixed assets a/c 1100
(depreciation charged on lucknow branch
fixed assets)
e. Dividend a/c dr. 400
to lucknow branch a/c 400
(dividend paid by lucknow branch on our
behalf)

f. Allahabad branch a/c dr. 600

to calls in arrears a/c 600
(calls in arrears received by Allahabad
branch on our behalf)

g. Lucknow branch a/c dr. 5000

(1). to bills payable a/c 5000
(being bill drawn by lucknow branch on
Allahabad branch)

(2). Bills receivable a/c dr. 5000

to Allahabad branch a/c 5000
(being bills accepted by Allahabad branch)
THANK YOU