Intercompany transaction

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2013 A is holding company and B,C,D Company are subsidiary. suppose 10000 consultancy fees is paid by B. Of which 2000 pertains to C and 3000 Pertains to D.

could you please let me the Journal entries and how it would reflect in B's Balancesheet

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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05 December 2013 Dr: Consultancy Rs.5000
Dr: D company Rs.3000
Dr: C company Rs.2000
Cr: Vendor a/c 10000

in the balance sheet only C & D debit balane appear as loans & advances Rs.2000 & R.3000 respectively