The branch company borrows the working capital from the head office.

1. If the money lent by the head office to the branch company is not for capital injection, but to solve the liquidity problem, it needs to be repaid to the branch company under the condition that both companies are independent accounting and self-financing.

2. When dealing with repayment, the Head Office and branches should do the following accounting treatment:

Branch repayment:

Debit: Other payables-Head Office

Loans: bank deposits

Headquarters collection

Debit: bank deposit

Loans: other receivables-branches

Hereby answer!