Accounting for Home Office, Branches and Agencies

(Simplified Approach in Tag-Lish)Prepared by:

Little Boy P. AsperoAcademic Committee Member – JPIA-UMak

 Alam mo yung BRANCH ???

Siyempre yun yung sanga ng isang puno,diba? Tsktsktsk!!! But on a serious note, ang puno ay very relatable po yan dito sa discussion natin ngayon. Ang puno bilang siya yung HOME OFFICE while ang mga sanga naman nito represent the 

BRANCHES. 

SM Megamall

Trinoma Branch

SM Mall of Asia

SM North EDSA

SMART CommunicationsAyala, Makati City(HOME OFFICE)

In this chapter, ang pag-aaralan po natin dito is kung paano yung accounting natin sa mga transactions ng

HOME OFFICE at ng BRANCHES ng isang company. Here, I will not discuss extensively about the accounting

for agencies kasi hindi naman po masyadong complicated at limited lamang po ang scope of

activities ng isang agency unlike branches at parang utus-utusan lang daw yang agency na yan ( according to

Prof. Tina). Hahaha! Okidoks po ba yun? Pero don’t worry I’m giving you the differences between AGENCY and BRANCH. But before that, sa palagay niyo po, bakit

kailangang mag put up ng mga branches ang isang kumpanya? hmmm…

AGENCY BRANCH It does not carry stocks of merchandise.

ONLY samples or displays for sales promotion purposes lamang.

It carries its own stocks of merchandise or siya mismo may hawak ng mga ito which are either delivered by the home office or binili niya mismo sa third parties or sa suppliers

Sales orders are sent to the HOME OFFICE and si home office lang yung nag-aapprove ng mga sales orders ng customers.

Si branch na mismo ang nag-aapprove ng mga sales orders ng mga customers.

After ma approve yung mga sales orders, si home office din yung nag de-deliver ng mga goods or merchandise sa mga customers (the usual sale of merchandise) and si home office din yung in-charge sa collections ng accounts.

Si branch itself nag di-deliver ng mga merchandise to customers (the usual sale) and it collects also the receivables and then yung cash collections ay ni-reremit sa home office.

Only a WORKING FUND for the expenses ng agency is provided by the home office. This is similar to accounting for PETTY CASH FUND using IMPREST FUND SYTEM.

( Remember niyo pa yung sa Financial Accounting 1 natin dati kay Sir Val? Refer na lang dun sa book ni Atty. Valix kung ano entries to replenish the fund when it runs low or is exhausted. )

Same sila ni agency which is may working fund din ang branch that is replenished when exhausted. Refer to accounting for Petty Cash sa book na Financial Accounting 1 ni Atty. Valix )

It does not maintain a separate set of books, meaning it doesn’t record journal entries. ONLY the home office records in its books the transactions affecting the agency.

It maintains its own books, meaning it records its own transactions. Parang considered as a separate entity ang branch dito as far as recording is concerned.

TAKE NOTE OF THESE:Sa paggawa po ng journal entries regarding agency transactions, mas practicable po if we are going to

account them SEPARATELY instead of merging it with the home office para atleast mas madaling ma-assess or ma-

monitor ng home office ang performance ng isang specific agency kung kumikita ba ito o hindi. Kasi kapag

hindi naman maganda ang performance ng isang agency na yan, pwede ng tanggalin or e-stop na ang operation

para hindi lugi ang kumpanya. ‘Di ba? Let’s say for example, si SMART Communications may tatlo (3) siyang agencies namely Cebu Agency, Ilo-Ilo Agency and Aklan

Agency.

Let’s say si Cebu Agency ay medyo weak ang kanyang performance, pwedeng e-stop na ng SMART ang

operations niya sa Cebu Agency. Sauce! Nalululugi na pala eh, tanggalin na yan! hahaha. So in making journal

entries, pano po natin sila e-aaccount separately? Simple lang, by attaching the name or place of the agency sa isang specific account. LAGI PO NATING

TATANDAAN NA SA MGA TRANSACTIONS NG AGENCY, SI HOME OFFICE LAMANG PO ANG NAG ME-

MAINTAIN NG LIBRO OR RECORDS OR SIYA LAMANG PO ANG GUMAGAWA NG JOURNAL ENTRIES AT HINDI

ANG AGENCY. Ok po ba?

Summary of Journal Entries for Agency Transactions:Agency Transactions Home Office Books

Establishment of a working fund for the agency by the home office

Working Fund – Cebu Agency xx Cash xx

Shipment of samples to agency Samples - Cebu Agency xx Shipments to Cebu Agency xx

Receipt of sales orders from agency and made deliveries Accounts Receivable-Cebu Agency xx Sales-Cebu Agency xx

Cost of sales identified with agency sales Cost of Sales-Cebu Agency xx Shipments to Cebu Agency xx

Replenishment of agency working fund based on submitted paid vouchers.

Expenses-Cebu Agency xx Cash xx

Payment by home office of agency expenses Expenses- Cebu Agency xx Cash xx

Agency samples on hand (ung original cost ng samples less ung natitira equal

Expenses- Cebu Agency xx Cash xx

Closing of agency revenue and expenses Sales-Cebu Agency xx Cost of Sales-Cebu Agency xx Expenses-Cebu Agency xx Cebu Agency Income xx

Closing of agency income to Income Summary Cebu Agency Income xx Income Summary xx

Napansin niyo po yung mga accounts doon na may naka-attach na name ng agency which is Cebu Agency? That’s what I meant of ACCOUNTED FOR SEPARATELY. For the purpose na para malaman ng home office ang performance ng Cebu Agency. Pero lagi lang tandaan yung sinasabi ko na si HOME OFFICE lang ang gumagawa ng journal entries at HINDI si agency. IT DOES NOT MAINTAIN ITS OWN SET OF BOOKS, meaning hindi siya nag re-record ng mga transactions sa libro. (refer to the first table on page 1 regarding the differences between agency and branch)

The Magic89.9 Company established an agency in Makati City and the agency revenues and expenses are recorded using specific accounts (accounted for separately). 1. Merchandise samples shipped to Makati Agency, P20,0002. P15,000 working fund is given to the agency.3. Agency sales orders filled up by the home office, P60,000 on account.4. Cost of shipment to agency customers, P45,0005. Working fund replenished for the following agency expenses:

Rent P2,000 Supplies 1,000 Salaries 3,000 Utilities 1,000 Total P7,000

Let’s try to answer this simple exercise regarding agency transactions.Exercise # 1 (Prepare the journal entries in the HOME OFFICE Books.)

Samples – Makati Agency 20,000Shipments to Makati Agency 20,000

Working Fund – Makati Agency 15,000 Cash 15,000

Accounts Receivable – Makati Agency 60,000 Sales – Makati Agency 60,000 Cost of Sales – Makati Agency 45,000 Shipments to Makati Agency 45,000 Rent Expense 2,000 Supplies Expense 1,000 Salaries Expense 3,000 Utilities Expense 1,000 Cash 7,000 Sales-Makati Agency 60,000 Cost of Sales – Makati Agency 45,000 Rent Expense 2,000 Supplies Expense 1,000 Salaries Expense 3,000 Utilities Expense 1,000 Makati Agency Income 8,000 Makati Agency Income 8,000 Income and Expense Summary 8,000

Solutions to Exercise # 1

Ano kamusta po? Ok na po ba tayo sa accounting for agency? Sige po, kung okidoks na, punta na tayo ngayon sa accounting for branches. No need na po to discuss yung dictionary meaning (denotation) ng salitang branch dito. Practically, alam naman po natin kung ano ito and I’ve already discussed it earlier.

Dito po sa branch accounting, kung titignan natin, considered ang branch as a separate business entity as far as recording of transactions is concerned dahil sa itong mga branches na ‘to ay may mga sariling libro na mini-maintain. As earlier mentioned, ang branch ang nagre-record ng kanyang mga transactions whether may kinalaman si home office or wala or transactions with other external parties/third parties. However, always remember po na for external reporting purposes, considered as a single business entity ang home office and branch.

Well, anyway in the first place and in reality, isang company lang naman talaga sila kung tutuusin. Later on, malalaman po natin kung bakit considered as one ang home office at ang branch for external reporting purposes sa kadahilanang may tinatawag tayong combined financial statements. Ibig sabihin lang po nito, lahat ng financial statements ng mga branches are being combined with the home office’s to come up with a single financial statements for external reporting in order to see the performance of the company as a whole.

Bago po ang lahat, alamin po muna natin ang nature ng mga accounts na ginagamit dito sa accounting for home office and branch. I’m pretty sure bago po lahat ito sa mga paningin natin. Pero don’t worry po, madali lang ang treatment sa mga accounts na ito. Tiwala lang!!! hehehe. Meron tayong tinatawag na reciprocal accounts dito. Ano po ba ang pagkakaintindi natin sa salitang reciprocal? Simple lang po, reciprocal means counterpart or katumbas ng isang bagay. Meron tayong 4 na makikitang bagong accounts dito, sila yung mga reciprocal accounts na tinatawag natin. These are the HOME OFFICE ACCOUNT, BRANCH ACCOUNT, SHIPMENTS TO BRANCH ACCOUNT and SHIPMENTS FROM HOME OFFICE ACCOUNT.

Ang counterpart/reciprocal account ng Home Office account ay ang Branch account and vice versa.

Ang counterpart ng Shipments to Branch account ay ang Shipments from Home Office account and vice versa

Account Title

Normal Balance(kung saang side tumataas/nag-iincrease ang isang account)

Home Office Credit

Branch Debit

Shipments to Branch Credit

Shipments from Home Office

Debit

Perhaps you are wondering kung ano ang normal balances ng mga reciprocal accounts na ito. Guys, lagi niyo ‘tong tatandaan huh. IMPORTANTE ito.

Account Title Saan siya nire-record?

Home Office Sa libro ni Branch

Shipments from Home Office

Sa libro ni Branch

Branch Sa libro ni Home Office

Shipments to Branch Sa libro ni Home Office

Sa kaninong libro natin nire-record itong mga accounts na ‘to?

Guys, take note huh. Wag kayong malito sa HOME OFFICE at HOME OFFICE ACCOUNT. Also, yung BRANCH at BRANCH ACCOUNT. Yung Home Office at Branch lang, sila yung mga entities or sila yung mga nagre-record ng transactions or yung mga nagme-maintain ng mga libro whereas (Sir Val’s style) yung may mga naka-attach na “account”, yun yung mga accounts mismo. Hahaha! Refer to the tables above kung saan sila nire-record. Nakuha po ba?

Also, lagi niyo rin pong tatandaan na dapat ALWAYS EQUAL yung balances ng HOME OFFICE ACCOUNT at BRANCH ACCOUNT since in the first place reciprocal accounts nga po silang dalawa. Pero yung SHIPMENTS TO BRANCH ACCOUNT at SHIPMENTS FROM HOME OFFICE ACCOUNT ay hindi laging equal. Bakit? Malalaman po natin yan sa next chapter, which is yung special problems about branch accounting. Magiging unequal ang dalawang accounts na ‘to dahil sa OVER/UNDER-ALLOWANCE na account.

Kasi yung shipments ng mga goods from home office to branch are not all the time @COST, minsan may pinapatong sila dito which we call the MARK-UP. Para atleast ma-assess din ni Home Office kung kikita ba si Branch in a normal sale kung saka-sakaling it purchases merchandise from third parties. Pag-aaralan po natin yan later to be discussed by Mr. Mauricio. For now, equal muna silang dalawa. We will assume all throughout na yung shipments ng goods to branch is @COST. Ok po ba tayo?

Now, regarding dun sa summary ng mga transactions and journal entries corcerning the HOME OFFICE AND BRANCH, kindly refer na lang po sa book na AdvAcc Part 1 ni Mrs. Baysa. Basahin po at intindihin lamang ng maigi. Kumpleto na po yon. Salamat!

Exercise # 2 (Prepare the necessary journal entries in the books of the home office and branch)The Magic89.9 Company established a branch in Makati City. Merchandise is shipped at cost

and periodic inventory system is used. Fixed assets are carried at the branch books and the home office bills the branch for expenses paid on its behalf.

The transactions of the home office and the branch show the following:• Cash of P150,000 is used to establish the branch.• Merchandise costing P150,000 was shipped to the branch.• Equipment amounting to P75,000 was purchased for cash by the home office and transferred to the

branch.• Sales on credit amounting to P950,000 and P600,000 by the home office and the branch respectively.• Account purchases amounting to P700,000 and P200,000 by the home office and the branch

respectively.• Payment of expenses amounting to P200,000 and P150,000 by the home office and branch

respectively.• Branch expenses paid by the home office, P25,000.• Cash collections amounting to P750,000 and P500,000 by the home office and the branch

respectively.• Cash remittance by the branch to the home office, P30,000.• Payment of liabilities amounting to P175,000 and P90,000 by the home office and branch

respectively.• Merchandise returned by the branch to the home office, P30,000.• Merchandise inventory end amounts to P160,000 and P150,000 in the home office and the branch

respectively.• Depreciation rate of 10%.

Answers to the above exercise:

HOME OFFICE BOOKS BRANCH BOOKSBranch 150,000

Cash 150,000Cash 150,000 Home Office 150,000

Branch 150,000 Shipments to Branch 150,000

Shipments from Home Office 150,000 Home Office 150,000

Branch 75,000 Cash 75,000

Equipment 75,000 Home Office 75,000

Accounts Receivable 950,000 Sales 950,000

Accounts Receivable 600,000 Sales 600,000

Purchases 700,000 Accounts Payable 700,000

Purchases 200,000 Accounts Payable 200,00

Expenses 200,000 Cash 200,00

Expenses 150,000 Cash 150,000

Branch 25,000 Cash 25,000

Expenses 25,000 Home Office 25,000

Cash 750,000 Accounts Receivable 750,000

Cash 500,000 Accounts Receivable 500,000

Cash 30,000 Branch 30,000

Home Office 30,000 Cash 30,000

Accounts Payable 175,000 Cash 175,000

Accounts Payable 90,000 Cash 90,000

Shipments to Branch 30,000 Branch 30,000

Home Office 30,000 Shipments from Home Office 30,000

Merchandise Inventory 160,000 Income Summary 160,000

Merchandise Inventory 150,000 Income Summary 150,000

No entry

Depreciation Expense 7,500 Accumulated Depreciation 7,500

Sales 950,000 Shipments to Branch 120,000 Purchases 700,000 Expenses 200,000 Income Summary 170,000

Sales 600,000 Shipments from Home Office 120,000 Purchases 200,000 Expenses-A 150,000 Expenses-B 25,000 Depreciation Expense-Equipment 7,500 Income Summary 97,500

Branch 97,500 Branch Income 97,500

Income Summary 97,500 Home Office 97,500

Branch Income 97,500 Income Summary 97,500

N/A

Income Summary 267,500 Retained Earnings 267,500

N/A

TAKE NOTE:Since reciprocal accounts sila, let’s say yung HOME OFFICE ACCOUNT, diba normal balance niya is credit? So, a corresponding increase (credit) in the Home Office account recorded in the Branch Book, there’s a corresponding increase (debit) din sa BRANCH ACCOUNT recorded in the Home Office Book and vice versa. Same treatment din sa SHIPMENTS TO BRANCH ACCOUNT and SHIPMENTS FROM OFFICE ACCOUNT. That’s the logic behind kung bakit tinawag silang reciprocal accounts.(Refer to the entries made on Exercise 2 above. Compare mo yung entries between the Home Office Books and the Branch Books)

Punta tayo ngayon dito sa issue ng sinasabi nating COMBINED FINANCIAL STATEMENTS. Ano ba itong combined financial statements? Simple lang, as its title states, “combined”. Ibig sabihin, kung ang SMART Communications ay may 4 na branches namely SM Megamall Branch, MOA Branch, Trinoma Branch at Market2x Branch, ang kaniya-kaniyang financial statements which include the Statement of Financial Position, Statement of Other Comprehensive Income and Statement of Changes in Equity ay pinapasa sa HOME OFFICE ng SMART sa Ayala quarterly or annually para e-combine lahat into one set of financial statements including the Home Office’s for external reporting purpose. Hence, external users like the investors and creditors would be able to know the performance of SMART Communications as a whole and not by branch.

Ung apat (4) na reciprocal accounts na yun are being closed, kasi hindi naman yun kailangan sa external reporting ng isang company and normally hindi na tayo nag-eentry dun. Those reciprocal accounts are being closed diretso na sa working paper natin. For illustration, refer na lang po sa book ni Mrs. Baysa. Kindly read and understand. Hehehe!!! Salamat.

PUNTA NA TAYO NGAYON SA LAST ISSUE NG BRANCH ACCOUNTING. Pero may tanong muna ako! Alam mo yung RECONCILIATION? Yun yung kapag may nakaaway kang kaibigan mo, tapos after realizing everything and accepting each other’s fault eh nagkabati kayo, na tumugma na yung mga damdamin ninyo eventually. Reconciliation tawag dun. Hehehe! Pero bakit nga ba nagkakaroon ng problema ang dalawang indibidwal? Probably it’s because of misunderstanding, wrong-timing sa pagbibitaw ng mga salita na nakakasakit ng damdamin at marami pang iba.

Parang relasyon lang din yan ni HOME OFFICE at ni BRANCH eh, minsan hindi sila nagtutugma or hindi sila balance sa ibang pagkakataon dahil jan sa mga errors in recording, remittances or shipments in transit (meaning ung cash remittance ni branch na hindi pa nakakarating kay home office @ year-end at deliveries ng goods na hindi pa natatanggap ni Branch na kung saan naka-record na sa libro ni Home Office pero hindi pa na record ni Branch). Yung reconciliation dito ay pareho lang din sa process nang bank reconciliation natin dati. Kung naaalala niyo pa yun, eh di good! Kung hindi na, siguro kailangan niyong balikan yung Chapter 4 sa Fin1 na libro ni Atty. Valix. Hehehe!

Since reciprocal accounts yung HOME OFFICE and BRANCH at tsaka yung SHIPMENTS TO BRANCH and SHIPMENTS FROM HOME OFFICE, they must reconcile each other at year-end. So kapag hindi sila balance, jan tayo gagawa ng reconciliation ngayon para maging balance sila. Just take a look at this table and understand.

Reconciling Items

Adjustments

Branch Account

Adjustments

Home Office Account

a. Debits in the branch account without corresponding credits in the home office account.

(ex. merchandise shipments in transit not yet taken in the branch books)

ADD

+

a. Credits in the branch account without corresponding debits in the home office account.

(ex. collections by home office of branch accounts receivable)

DEDUCT

-

a. Debits in the home office account without corresponding credits in the branch account.

(ex. remittances by the branch at the end of the period not yet taken in the home office books)

DEDUCT

-

a. Credits in the home office account without corresponding debits in the branch account.

(ex. collections by branch of home office accounts receivable)

ADD

+

OK! Let’s make scenarios using some of the guidelines above to reconcile the reciprocal accounts.Let’s say dun sa letter A, MERCHANDISE SHIPMENTS IN TRANSIT. Transit means nasa biyahe pa ang mga merchandise, hindi pa nakakarating kay Branch at December 31. So ibig sabihin lang nito, hindi pa na journalize ni Branch sa libro niya ang entry na (Dr.) Shipments from Home Office and (Cr.) Home Office. As a result, understated yung accounts na Shipments from Home Office at Home Office sa libro ni Branch. Kaya kailangan natin e-reconcile sila by adding these accounts in the branch books.

EXAMPLE: Si SMART Communications nag-deliver ng goods at cost sa branch niya sa Trinoma. Kunyari malayo ang Trinoma sa Makati, mga after 2 days pa bago ni Trinoma matatanggap ang goods (kunyari lang naman. Hahaha). So let’s say nag ship si Home Office on Dec. 30 ng merchandise kay Trinoma costing P10,000. So, ano yung magiging entry muna ni Home Office dito sa libro niya on Dec.30 nung nag deliver siya ng merchandise kay Trinoma Branch? Diba (Dr.) Branch 10,000 and (Cr.) Shipments to Branch 10,000.

Diba @year-end December 31 gumagawa tayo ng financial statements? So si Trinoma Branch, since most probably sa January 1 pa niya matatanggap yung merchandise, ibig sabihin hindi pa niya naisama yung entry na (Dr.) Shipments from Home Office 10,000 and (Cr.) Home Office 10,000 nung gumagawa si Trinoma ng kanyang financial statements on Dec.31. Hence, hindi sila tumugma ni Home Office sa Ayala. Kaya gumagawa tayo ng mga adjustments para ma-reconcile natin ang balances ng mga reciprocal accounts na yan. Ok po ba? Ito pakitignan na lang ang illustration.

December 31, 2013

Home Office Books

Branch 10,000 Shipments to Branch 10,000

December 31, 2013Branch Books

-WALA PANG ENTRY DITO SI TRINOMA BRANCH KASI NGA BY

JANUARY 1 PA NIYA MATATANGGAP YUNG GOODS-

So, as u can see, hindi sila balance ni Home Office kasi nga wala siyang entry na ginawa pa. Hence, e-reconcile natin sila by making

an adjusting entry on Dec.31.

Shipments from Home Office 10,000Home Office 10,000

Ayun, equal na sila!!! Hahaha!

Cash remittances in transit ni Branch kay Home Office. Dito @year-end wala pang nagawang entry si Home Office kasi hindi pa niya natatanggap ang pera. Hence, hindi sila tumugma ni Branch. So,to reconcile, we need to make an adjusting entry on Dec.31.

Cash 6,000

Branch 6,000

Ayun, balance na sila! Hahaha!

Cash remittances in transit ni Branch kay Home Office. Entry: Home Office 6,000 Cash 6,000

Transactions Home Office Books Branch Books

Transfer of cash from the home office

Investment in branch x Cash x

Cash x Home office equity x

Transfer of cash from the branch

Cash x Investment in branch x

Home Office Equity x Cash x

Transfer of mdse from HO at cost

Investment in branch x Shipment to branch x

Shipment from HO x HO Equity x

Transfer of mdse from HO at above cost

Investment in Branch x Allowance for OV x Shipment to branch x

Shipment from HO x HO Equity x

Payment by HO of branch expenses

Investment in branch x Cash x

Expenses x HO Equity x

Allocation of prev. paid branch exp

Investment in branch x Expenses x

Expenses x HO Equity x

An illustration of journal entries recorded for interoffice transactions follow:

Transfer of Fixed asset from home office to Branch

Memo entry Memo entry

(Note: There will be no entry if all fixed assets are accounted in the books of the home office); otherwise:

Investment in branch x Accumulated depn x Fixed Assets x

Fixed Assets x Acc Depn x HO Equity x

To take-up branch Profit/(loss)

Investment in branch x Branch Income x

Income Summary x HO Equity x

Branch loss x Investment in branch x

HO Equity x Income Summary x

To adjust the reported branch NI /NL) for realized allowance

Allowance for Ovrvltn x Branch Income x

No Entry

Note: The adjusting entry to reflect the true net income or loss of the branch from the standpoint of the home office is always favorable and only relevant when billing policy is above cost:

Billed Price Cost Price Mark-up on Cost

Branch Beg Invty (from HO)) xx Xx xx

Current shipments (from HO xx Xx xx

Branch End Invty (from HO) (xx) (xx) (xx)

Cost of Goods Sold xx Xx xx

Detailed computation of realized allowance for overvaluation thru sales by the branch to outsiders during the period: Cost = Billed Price/100% + % mark-up on cost = Mark-up on cost/% mark-up on cost. The amount of allowance considered realized will be the allowance carried by the cost of goods sold. There are two pricing methods generally used by the home office in billing the branch for merchandise transfers:•Billed at cost – the merchandise is transferred at cost, thus when the branch sells the merchandise, the entire gross margin is included in the branch net income.•Billed at cost plus markup – the merchandise is transferred at an amount between cost and the selling price. This intermediate pricing method allocates part of the gross margin to the branch and the remainder to the home office.

• Working paper adjustments and eliminations must be determined in order to:

• Eliminate inter-company balances from the combined statements to avoid redundancy, and

• Adjust some items in the cost of sales section of the branch income statement to their true costs (as a consequence of the billing policy not equal to cost).

a. Billed at Cost b. Billed above costHO Equity x Investment in Branch x

HO Equity x Investment in Branch x

Accounts Payable x Accounts Receivable x

Accounts Payable x Accounts Receivable x

Shipment to Branch x Shipment from Home Office x

Shipment to Branch x Allowance for Ovrvltn x Shipment from HO x

None Allownce for Ovrvltn x Branch Beg Invty x

None Br Ending Invty (I/S) x Branch End Invty (B/S) x

The working paper adjustment/elimination entries are as follows:

• When a company is composed of a home office and more than one branch, the home office records include a separate investment in branch account and a separate allowance for overvaluation account for each branch. Separate worksheet adjustments are made for each branch.

• When assets are transferred from one branch to another

branch, the home office account on each branch’s records are used to record the transfers. (Inter-branch receivables and payables are not created.) In essence, the transferring branch reverses the entry to record the transfer from the home office and the receiving branch enters a transfer as if it comes from the home office.

MADAMO GUID NGA SALAMAT!