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Accounts entry

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Querist : Anonymous

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Querist : Anonymous (Querist)
27 August 2012 there are two sister concern company, A and B.
A had paid B,s Vender Mr. X. Rs. 500.( B purchase goods from X)
what will be the accounts entry in both company
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CMA Ramesh Krishnan

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CMA Ramesh Krishnan (Expert)
27 August 2012 In the books of A

Dr: Company B Rs.500
Cr: Cash Rs.500

In the books of B

Dr: Vendor X Rs.500
Cr: Company B Rs.500

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