Match each head office and independent branch reconciliation scenario on the left with its corresponding adjusting journal entry on the right.
- Goods invoiced and dispatched by Head Office but not yet received by Branch at financial year-endDebit Goods in Transit Account; Credit Head Office Current Account (in Branch books)
- Cash remitted by Branch to Head Office but received after financial year-end closingDebit Cash in Transit Account; Credit Branch Current Account (in Head Office books)
- Branch operating expenses paid directly by Head Office from the Head Office bank accountDebit Operating Expenses Account; Credit Head Office Current Account (in Branch books)
- Head Office settles a branch trade creditor invoice directly using Head Office fundsDebit Trade Creditors Account; Credit Head Office Current Account (in Branch books)
Cevap
1. Goods in transit dispatched by Head Office matches Debit Goods in Transit Account and Credit Head Office Current Account (in Branch books).
2. Cash remitted by Branch in transit matches Debit Cash in Transit Account and Credit Branch Current Account (in Head Office books).
3. Branch operating expenses paid by Head Office matches Debit Operating Expenses Account and Credit Head Office Current Account (in Branch books).
4. Branch trade creditor settled by Head Office matches Debit Trade Creditors Account and Credit Head Office Current Account (in Branch books).
2. Cash remitted by Branch in transit matches Debit Cash in Transit Account and Credit Branch Current Account (in Head Office books).
3. Branch operating expenses paid by Head Office matches Debit Operating Expenses Account and Credit Head Office Current Account (in Branch books).
4. Branch trade creditor settled by Head Office matches Debit Trade Creditors Account and Credit Head Office Current Account (in Branch books).
Each reconciliation scenario requires specific journal entries to align the reciprocal Branch Current Account in the Head Office books with the Head Office Current Account in the Branch books. Items in transit are always recorded in the receiving entity's books at year-end, while direct payments by Head Office increase the Head Office Current Account balance in the Branch books.
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Anahtar Kavram
Independent Branch Accounts and Head Office Reconciliation Adjustments