intercompany accounting

This query is : Resolved 

11 September 2010 In interview one manager ask me that if there are two company A & B, bill receivable by A on the behalf of Company B then what will be the journal entry in books of B Accounts and he ask what is intercompany Accounting.

11 September 2010
In A company entry

Dr: Bill receivable
Cr: B Company

and

B company

Dr: A company
Cr: Bills receivable a/c

Inter company accounts mean 2 or more companies under the same managment having business and other transactions

11 September 2010 Agreed with CMA Ramesh, but the credit in the books of of Company B will be 'Bills Payable'.


11 September 2010 IN THE BOOKS OF B

CO A A/C DR
TO B/P A/C

11 September 2010 WHEN THERE IS RELATIONSHIP OF SUBSIDIARY OR HOLDING THEN TRANSACTION BETWEEN THEM ARE HANDLED BY INTERCOMPANY ACCOUNTS.



You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join CCI Pro
CAclubindia's WhatsApp Groups Link


Similar Resolved Queries


loading


Unanswered Queries