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what is the accounting impact for revenue collected on behalf of Head office by Branch or liaison office?

A company registered in country A collects all the billing and settlement plan (BSP) and
Cargo Account Settlement Systems (CASS) and refund it to HO. The service charge which it collects on behalf of HO, and what shall be accounting treatment for it?

Thanks in advance!

Answers

Anonymous
(Financial Service) |

in Head Office Books :

Dr Collection Co (with net amount collection - service charges)
Dr Service charges (expense a/c)
Cr A/R

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