Advanced Financial Accounting FIN-611 Mian Ahmad Farhan Lecture-12 Departmental Accounts

Departmental Accounts

X’s Account Particulars Amount Y’s A/c 50 Z A/c 70

Journal Entries X A/c 50 Y A/c 50 Z A/c 70 X A/c 70

Journal Entries 1- Transfer opening assets to branch Account Branch A/c xxx Assets xxx (With opening balances) 2- Transfer opening liabilities to branch Account Liabilities xxx (With opening balances)

Balance b/f 100 Branch A/c 100 Debtors 100 Opening debtors 100

Journal Entries 3- Goods sent to branch Branch A/c xxx Goods sent to branch A/c xxx 4- Cash sent to branch for expenses Branch A/c xxx Cash / Bank A/c xxx

Journal Entries 5- Cash Received from branch Cash / Bank A/c xxx Branch A/c xxx 6- Goods return from branch Goods sent to branch A/c xxx Branch A/c xxx

Journal Entries 1- HO sent goods to branch Branch A/c xxx Goods sent to branch A/c xxx 2- Goods return from branch to HO Goods sent to branch A/c xxx Branch A/c xxx

Goods Sent to Branch Account Particulars Amount Goods sent to branch Balance 20 80 100

Journal Entries 7- Transfer closing assets to branch Account Assets xxx (With closing balances) Branch A/c xxx 8- Transfer closing liabilities to branch Account Liabilities xxx (With closing balances)

Journal Entries 9- Profit or loss of branch a). Profit Branch A/c xxx Profit & Loss xxx b). Loss