27 June 2015
Dear all,
Could anyone adive me the journal entry for the below situation.
Mr X owns 2 companies(company A and company B) and he purchased to 2 Machines for business.
however, he issued cheque belongs to Company A.
As he purchased two assets for both the company could you please advise the journal entries to be posted in Company A and Company B.
27 June 2015
Situation 1: if supplier issued Invoice in the Name of Company A and Company B separately. Company A- (i)Fixed Asset Dr. To Supplier (ii) Supplier Dr. Company B Dr. To Bank
Company B- (i)Fixed Asset Dr. To Supplier (ii) Supplier Dr. To Company A
Situation 2: if Supplier issued Invoice in the Name of Company A
You have to sell Fixed Asset from Company A to Company B.