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    Accounting For Home Office, Branch and Agency Transactions: Chapter 9 & 10

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    Jamiemarie Pineda
    All transactions of a sales agency are recorded in the books of the home office, not separately. When the agency receives a revolving fund from the home office, cash is debited and the agency credited. When the agency places an order, accounts receivable is debited, sales and cost of sales credited, and inventory and cash debited. To determine the agency's profit, sales and expenses are credited to an income summary account.

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    Accounting For Home Office, Branch and Agency Transactions: Chapter 9 & 10

    Uploaded by

    Jamiemarie Pineda
    10 views9 pages
    All transactions of a sales agency are recorded in the books of the home office, not separately. When the agency receives a revolving fund from the home office, cash is debited and the agency credited. When the agency places an order, accounts receivable is debited, sales and cost of sales credited, and inventory and cash debited. To determine the agency's profit, sales and expenses are credited to an income summary account.

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    agency transaction

    Original Title

    AFAR2 REPORT PPT

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    All transactions of a sales agency are recorded in the books of the home office, not separately. When the agency receives a revolving fund from the home office, cash is debited and the agency credited. When the agency places an order, accounts receivable is debited, sales and cost of sales credited, and inventory and cash debited. To determine the agency's profit, sales and expenses are credited to an income summary account.

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    10 views9 pages

    Accounting For Home Office, Branch and Agency Transactions: Chapter 9 & 10

    Uploaded by

    Jamiemarie Pineda
    All transactions of a sales agency are recorded in the books of the home office, not separately. When the agency receives a revolving fund from the home office, cash is debited and the agency credited. When the agency places an order, accounts receivable is debited, sales and cost of sales credited, and inventory and cash debited. To determine the agency's profit, sales and expenses are credited to an income summary account.

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    of 9

    CHAPTER 9 & 10

    ACCOUNTING FOR HOME Pineda, Jamie


    OFFICE, BRANCH AND AGENCY Marie D.
    TRANSACTIONS BSA 3B AFAR2
    INTRODUCTION

    • Branches of enterprises are not


    separate legal entities
    • Sales agency is also not a separate
    business entity.
    • Home office is usually the base of
    operations wherein branches and
    agencies are maintained on business
    locations depending on the function
    and made of operation.
    ACCOUNTING
    FOR AN AGENCY

    An agency does not


    maintain its own separate
    accounting books, all of
    its transactions are
    recorded on the books of
    the home office.
    AGENCY TRANSACTION
    *Receipt of revolving fund from home office

    HOME OFFICE BOOKS

    ENTRY:

    Cash –Agency X xx
    Cash xx
    AGENCY TRANSACTION
    *Orders sent by agency to home office

    HOME OFFICE BOOKS


    ENTRY:

    Accounts receivable xx
    Sales-Agency X xx Cost
    of Sales-Agency X xx
    Inventory xx Cash
    xx Accounts Receivable
    xx
    AGENCY TRANSACTION
    *Disbursement from the revolving fund

    HOME OFFICE BOOKS


    ENTRY:

    NO ENTRY
    AGENCY TRANSACTION
    *Replenishment of Revolving Fund

    HOME OFFICE BOOKS


    ENTRY:

    Various expenses xx
    Cash xx
    AGENCY TRANSACTION
    *To determine the profit attributable to the
    agency

    HOME OFFICE BOOKS

    ENTRY:
    Sales-Agency X xx
    Cost of Sales xx Various
    Expenses-Agency X xx Income
    Summary- Agency X xx
    AGENCY TRANSACTION
    *To close income summary account

    HOME OFFICE BOOKS

    ENTRY:

    Income Summary- Agency X xx


    Income Summary xx
    THANK YOU FOR
    LISTENING!

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