Journal Entry for Stock Transfer to Branch

Journal Entry for Stock Transfer to Branch

In this article we would explain the journal entry for stock transfer by head office to a branch office. It is assumed that separate set of books are maintained both in head office and branch.

Journal Entry for Stock transfer in Head Office Books

Stock transferred to branch is credit as there is a decrease in asset, while receivable from branch is credited, because in future, funds will be transferred to Head office against sales of this stock.

Date	Particular	Ledger Folio	Dr.	Cr.
	Branch Receivable		xxx
	Stock			xxx

 

Journal Entry for Stock transfer in Head Office Books

The following journal entry shall be recorded in branch books of accounts, the stock shall be debited as increase in stock and Head office is credited as this a liability of branch to pay the head office in future against this stock upon its sales.

Date	Particular	Ledger Folio	Dr.	Cr.
	Stock		xxx
	Head Office			xxx