Branch Accounting in Tally |how to do ?

Posted on February 22, 2010 by Mahendra • 28 Comments

When you have a branch in a different state, then how you will prepare accounts for branch ?

A head office and branch office accounts must be separated however at the year end and for assessment purpose, the branch Accounts are required to be incorporated into the Head Office Account.

A branch is required to issue Form F towards stock transfer from HO to Branch

First of all you must understand what is a branch. A branch is a distinct entity from its Head Office having separate TIN CST number. It may or may not have separate bank accounts.The head office and Branch accounting transactions are required to be recorded separately and you can’t club both the transactions.

Suppose a branch office incur an expenses of Rs. 5000 towards consultancy fees to an advocate and the same is being paid by the Head office bank account, then the entry will be made as per below :

In the books of branch Account

Dr. Consultancy Fees Expenses Rs. 5000

Cr M/s. ABC & co. Rs. 5000

(Being consultancy fees credited to supplier’s Account)

Now on payment of this amount from the bank Account of HO

Dr. M/s. ABC & Co. Rs. 5000

Cr. Head Office Account Rs. 5000

(Being amount paid to supplier from the HO Bank Account)

In the books of Head office only one entry as per below will be made

DR. Branch Account Rs. 5000

Cr. Bank Account Rs. 5000

(Being Amount paid on behalf of Branch to M/s………)

In tally, you have to create a branch account under the group branch/Division Accounts as shown below for creating a branch for Red Express Mumbai branch account

Similarly in the books of Branch Accounts you can group the head office under branch /divisions as mentioned above.

Branch stock transfers are subject to Form no F I will write in future about how to record inter branch transfer accounting

Do let me know if you have some specific query

Mahendra (192 Posts)

Mahendra is founder and CEO of the I Vision Infotech, Authorised Tally Sales and Service Partner and helping Tally users to learn Tally and accounting free through this site

shubhangi

helo, sir
how to create staff salary entries in talyy erp9.
but i am not using payroll.can other way for create the entries?
please help me.

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Sreejith

sir,
Pls help me, how to make Letter of credit transaction in tally

shakin

Sir/Madam
I want to know how to findout total sales amount (cash and credit) against particular party?

Jubi

Dear Mahendra,

There are some indirect expense (petrol exp) incured from branch and paid by Head offce.
How to record this transaction in Tally In BRANCHS BOOK.

Mahendra

Jubi,
Debit the expenses and Credit the HO

Ali

Dear Mr.Mahindra,
Can you send me link and notes which have complete solution for branch accounting with examples.

Reply awaits.

Regards.

Shrikant

We have a branch in same state and I want to start branch transfer memo printing from tally erp. But we cant able to print address of both e.i destination branch and source branch on transfer memo. Also I required format of transfer memo like delivery notes. Pls help me for the same.

how to maintain letter of credit process in tally.

Shakin,
A letter of Credit process does not require to maintain in Tally!
It's like a credit facility by the bank and you need to enter it based on the transactions.
First you should understand what a letter of credit. Once you got it, it will be easy to record the transactions related to L/c in Tally.epr 9 accounting software

Jayaram

how to stock transfer from branch office to head office & how it will be entry in tally ERP.9 Please clarify.

raju

i want to know the entries for stock transfers from head office to branch office and the groups to be ascertained for each ledger.

thanking you
raju

U.VINAY KUMAR

Sir,
I Wanted to know, if funds transfered from Head office Bank a/c to Branch Bank a/c. where do we enter this entry in Tally 9(if contra entry created cash balance is showing negative) please help me by replying me the Solution....

deepak

kindly provide the fixed assent in enty in taly ERP9.

Regards
deepak

DEEPAK KUMAR

please send entry of All types for branch accounting.
for a new branch

regards
Deepak

Hello Deepak,
Entries depends on the actual transaction. Instead of asking such blank way, you should mention the transaction for which you require entries. No one can have such ready made entries for any one.

Raju

Dear Sir/Madam,
I want to Know How to do Branch Accounts and Partnership Accounts in Tally & Explain the Proforma, Under which group you have to enter in Tally for the above mentioned topics for Computerised Branch Accounts for BCom 2nd Year.

Thanking You Sir,

lalat parida

Dear Mahendra ji,

i want to know the income head ( which head i booking our income)our company is collect money from customer like fixed deposit,RD,MIS & they monthly return % wise to customer.....

Lalat,
To get free support, you must mention your Tally serial number otherwise, search Google

ajantha

How two make branches in tally

Hareesh

Dear Mahendra,
I'm a wholesale dealer for Tiles and Sanitary and Real Estate business in Qatar. I'm doing both tradinf and Real Estate acconts in same data. Now I want to seperate this a/c into trading and real estate. Can I use cost centre or please advise is any other method can I adopt.

Hareesh TV
Doha, QATAR

Dear Hareesh,
Cost Center is something different and it will not serve your purpose.
if the two business are totally different which have its own income/expenses then I would suggest you to create two different company one is for Tiles & Senitary, Second is Real Estate. at the year end you can merge both this company into one group company. Merging both will not meant that both these company will be deleted. it will be there still but it will create a new group company which will import all the data from both the company e.g. senitary and real estate and will consolidated it.

Rajan

Dear Mahendra jee
I am going to launch a new tv chanel which has 3 Nos. Branch office also in difrent state. Can you please tell me in details that which software we should use for accouting and payroll purpose?. Plese also suggest me how to use the same in brief that how we made salary, projected exp. , budjet etc.

With Regards

Rajan Mishra

Dear Rajanji,
Thanks for your query.
Tally.erp 9 is the best suit which serves most common requirement of any business. for special purpose you may need to customize it if you wish so. Tally.erp 9 provides a complete payroll module. for making entry you may contact us on Gtalk or yahoo messenger
best regards

RUPESH

How to set configuration of Stock Market account in Tally ? We want to know about capital gain / loss for our personal account. Please give me guideline.

Use Shares s as inventory and record sales purchase transactions accordingly.

vijay

how to branch account null in ho a.c for the financial year

Mandeep

please tell me how to manage things further specailly stock tranfer, invocing for the branch office etc..

SARFARAJ

PLEASE GIVE ME EXAMPLE OF BRANCHES STOCK MAITAIN AND ACCOUNT