ABC company paid transfer money to WRC Company on behalf of CBD Company what is the entry in two company
2 Replies
Rama chary Rachakonda
(Master in Accounts & Lawyer email ID:ramachary64@gmail.com voice no:9989324294)
(5661 Points)
Replied 03 November 2024
Here are the journal entries for the two companies:
*ABC Company (paying on behalf of CBD Company)*
Debit: CBD Company (as a receivable or advance) Credit: Bank/Cash (the amount paid to WRC Company)
Example: Debit: CBD Company ( Advance) $XXXX Credit: Bank $XXXX *
Example: Debit: Bank $XXXX Credit: ABC Company (Trade Payable) $XXXX Note:
The entries assume that ABC Company is acting as an agent or intermediary on behalf of CBD Company.
If there are any specific agreements or arrangements between the companies, the entries may vary.
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