The document summarizes the differences between a sales agency and branch for a home office (HO). A sales agency is dependent on the HO and handles marketing and sales but does not maintain its own accounting records. A branch is more independent as it can take loans or payments and maintains its own accounting records, presenting separate financial statements that are combined with the HO statements. The document provides journal entries examples for transactions between a HO and its sales agency in Malolos, including setting up a working fund, shipments, and sales.
The document summarizes the differences between a sales agency and branch for a home office (HO). A sales agency is dependent on the HO and handles marketing and sales but does not maintain its own accounting records. A branch is more independent as it can take loans or payments and maintains its own accounting records, presenting separate financial statements that are combined with the HO statements. The document provides journal entries examples for transactions between a HO and its sales agency in Malolos, including setting up a working fund, shipments, and sales.
The document summarizes the differences between a sales agency and branch for a home office (HO). A sales agency is dependent on the HO and handles marketing and sales but does not maintain its own accounting records. A branch is more independent as it can take loans or payments and maintains its own accounting records, presenting separate financial statements that are combined with the HO statements. The document provides journal entries examples for transactions between a HO and its sales agency in Malolos, including setting up a working fund, shipments, and sales.
The document summarizes the differences between a sales agency and branch for a home office (HO). A sales agency is dependent on the HO and handles marketing and sales but does not maintain its own accounting records. A branch is more independent as it can take loans or payments and maintains its own accounting records, presenting separate financial statements that are combined with the HO statements. The document provides journal entries examples for transactions between a HO and its sales agency in Malolos, including setting up a working fund, shipments, and sales.
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HOBA
Sales agency - para mag expand yung home office - Marketing arm (in charge sa pagmamarket ng product) - Sila yung sa mga free taste - More formal compared sa free taste - Need ng permission from HO
Home office- mother company
Sales agency VS Branch
- Pag sales agency, sya lang tiga market ng product
Differences: 1. Sales Agency is dependent- pag may bibili lalo na utang, need magpaalam kay HO Branch is independent- mapautang o mapacash 2. SA does not maintain its own accounting record Branch Maintains accounting record 3. SA all transactions are recorded on the books of HO- pagsila nakabenta, HO nagrerecord Branch all transactions are recorded on its own books 4. SA does not have FS Branch presents its own FS but combines with HO FS- kinocombine kasi branch and HO ay iisa lang, at the end of the acctg period need icombine
Drill 1 Dasma company established a sales agency in Malolos Give appropriate JE 1. Working fund- budget Dr Working Fund SA- 20,000 (need lagyan ng SA kasi audit matter to check recordings) Cr Cash in Bank- 20,000
2. Dr Sample inventory- 3,000
Cr Shipment to SA or Merchandise Inventory- 3,000
3. Walang hawak na inventory si SA
Dr Accounts Receivable- SA- 150,000 CR Sales SA- 150, 000 (idesignate na SA) HOBA H- higher revenue O- overall company improved ratings B- bridging towards new and old customers A- Additional networks
HO- reciprocal in nature – Branch
Home office may device na ginagmit
- Investment in Branch (Asset Account) - Normal balance - debit
Branch device - Home office (Equity Account) - Normal balance - credit
Drill 2
Will be carried in the books- sagot nya
HO Branch Inv in branch 488,000 Cash 488,000 Cash 488,000 HO 488,000
Investment in Branch 12k Shipment from HO 12k
Shipment to Branch 12Kk HO 12k
Inv in branch 100k Merchandise inventory 200k
AP 100k AP 100k HO 100k
No entry Equipment 120k
Cash 120k
Inv in Branch (carrying amt) – 60k Equipment 60k
Accumulated Dep 300k HO 60k Equipment (historical cost) 360k
Cash 600k Sales 600k
COGS 192k MI 192k
Cash 80k HO 80k
Inv in Br 80k Cash 80k
Inv in Br 25k OPEX (150+25) 175k
OPEX 25k Dep Exp 10k Cash 150k Accu Dep 10k HO 25k
CLOSING ENTRIES for tempo acct
Sales -600k Cost of sales 192k Exp 175k Dep exp 10k Income Summary – 223k
Inv in branch 223k IS 223k
IS 223k HO 223k
2. Reconcile( need na balance sila)
HO – Investment in Branch BR- Babantayan HO account
