Journal Entries for Stock and Debtors Accounting

Important journal entries of this method are as follows: 

Common Journals for both cost and invoice price transactions: 

Transactions	Journals
For goods sent to branch.	Branch Stock A/c…................................ Dr. To Goods sent to branch A/c
For cash sent to branch by H.O.	Branch Cash A/c…................................ Dr. To Bank A/c
For cash sales at branch.	Bank A/c…................................ Dr. (Money remitted directly to H.O) Branch Cash A/c…................................ Dr. (Money remitted through branch) To Branch Stock A/c
For credit sale at branch.	Branch Debtors A/c…................................ Dr. To Branch Stock A/c
When goods returned by the branch to the H.O.	Goods sent to branch A/c…................................ Dr. To Branch Stock A/c
For goods returned by the customer to the branch.	Branch Stock A/c…................................ Dr To Branch Debtors A/c
For collection from debtors.	Bank A/c…................................ Dr. Branch Cash A/c…................................ Dr. To Branch Debtors A/c
For discount, allowance & bad debt.	Branch P/L A/c…................................ Dr. To Branch Debtors A/c
For branch expenses.	Branch Expenses A/c…................................ Dr. To Bank A/c To Branch Cash A/c
For cash remittance to H.O.	Bank A/c…................................ Dr. To Branch Cash A/c
For purchase of assets at branch.	Branch Asset A/c…................................ Dr. To Bank A/c To Branch Cash A/c
For depreciation on branch assets.	Branch P/L A/c…................................ Dr. To Branch Asset A/c

For Abnormal loss.	Abnormal Loss A/c…................................... Dr. To Branch Stock A/c
When cash received from insurance company for loss.	Bank / Branch Cash A/c................................... Dr. To Abnormal Loss A/c
Actual loss due to Abnormal Loss.	Branch P/L A/c…................................... Dr. To Abnormal Loss A/c

Additional journals for invoice price transactions:

 

 

Transactions	Journals
To reduce the load on the price of Opening Stock.	Stock Reserve A/c…..................................... Dr. To Branch Stock Adjustment A/c
To reduced load on goods sent to branch.	Goods Sent to branch A/c..................................... Dr. To Branch Stock Adjustment A/c
To reduced load on goods returned to H.O.	Branch Stock Adjustment A/c.................................. Dr. To Goods sent to branch A/c
To reduced load on Abnormal loss.	Branch Stock Adjustment A/c..................................... Dr. To Abnormal loss A/c
To reduce the load on the price of Closing Stock.	Branch Stock Adjustment A/c..................................... Dr. To Stock Reserve A/c
For Normal loss.	Branch Stock Adjustment A/c..................................... Dr. To Branch Stock A/c
For Apparent Profit.	Branch Stock A/c................................... Dr. To Branch Stock Adjustment A/c

For opening and closing balances of different accounts no separate entry is needed to be made. The balances are to be recorded as “ To Balance B/D or By Balance B/D” for opening and “ By balance C/D or To Balance C/D” for closing values in the corresponding accounts.