Advanced financial accounting - Lecture 14: Branch accounting

Advanced financial accounting - Lecture 14: Branch accounting. The main topics covered in this chapter include: stock and debtor system; branch stock account; branch debtors account; goods sent to branch account; branch stock reserve account; branch expenses account; branch adjustment account; branch profit and loss account;... Please refer to the lecture for details!

Advanced Financial  Accounting

FIN­611  

Mian Ahmad Farhan 

Lecture­14 Branch Accounting 

Stock & Debtor System 

Goods sent to branch 

Branch stock A/c  xxx

Goods sent to branch A/c xxx(Invoice price) 

Debtors A/c

(Bad debts )Branch Exp

(Discount allowed) Branch stock 

(Stock return)Closing balance 

xxx

xxxxxxxxxxxx

Goods sent to branch A/c  xxx

Branch stock A/C     xxx (Invoice price) 

Branch debtors(Sales return) 

xxx

xxxxxx

xxx

to branch adjustment A/c)

xxx

Goods send to branch 

Balance 

12030

Branch debtors  150

Bank / Cash  xxx

Balance  Branch Expenses 

Branch Exp.  

Branch Adjustment A/c 

Branch adjustment xxx

Branch Exp   xxx

1. Branch stock account 

2. Branch debtors account 

3. Branch expenses account 

1. Branch adjustment account 

2. Branch stock reserve account

3. Goods sent to branch account 

50,000

Purchases      320,00

Closing stock reserve  1,000 Closing stock reserve 

(Invoice price)Balance 

5,000400

Loading = 3,000 / 125 x 25 = 600

Branch stock reserve (Opening)

Goods sent to branch 

6008,000

Branch stock reserve A/c  

Branch Adjustment A/c   

Invoice   Sales 

   Cost 

Surplus 

Loading 

Branch Adjustment A/c   1,000

     Stock reserve A/c   1,000 

Goods sent to branch (Loading)Surplus 

Loss   

xxxxxxxxxxxx

12,000 / 133.333 x  33.333 = 3,000