05 March 2011
our company is Holding company. It have 4 Susidiary Company and accounts department is shared service for all the 4 Company. The thing is Company " A" paid to salary of " B" Company employees Rs1,50,000. Then one week later the company "B" return that money to Company "A". So How to enter the Entries. i am in trouble. Please help
09 March 2011
While making payment to Employees of "B" Entry Will be as follows
1) Salary Exps. A/c Dr. Salary payable A/c Cr. (Book as Exps. of Company) 2) Salary Payable A/c Dr. Bank A/c Cr. (For making Payment) 3) B Company A/c Dr. Salary Exps. A/c Cr. (Reimbursement of Exps, from resp. Company)
At the Time of payment recd. from "B" Company, following entry will be passed
09 March 2011
Yes, U can pass entries this way. If any supplier payment done by A company on behalf of B Company then also same entry will be passed "B' Company Account will opened as Sundry Debtors under the head Current Assets in the books of A Company and "A" Company A/c will opend as Sundry Creditors under Current Liabilities in the books of "B" Company
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