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How to Maintain Branch Accounts of Export Company? |
In Export Business there are is 1 Head Office and other is Branch office but everything is done from Head office,means, Payments and Receits come in and out in Head office bank account. There is Only one Bank Account used by Head Office and is also used for Branch office. Expenses are Transferred to Branch office throuch a local bank a/c. Head office uses International Bank A/c to make Transfers to suppliers and receive Payments from Customers. As the head office is dealing with most of the transactions, there is no need to maintain much books in the branch. A petty cash book and a bank book for your local bank will be enough. An imprest system of accounting will be suitable for these type of organizations. |
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