Reimbursemet of expenses

India company books;

expense a/c

To Bank/Cash a/c

(expansion incurred by India company)

H.O a/c

To Reimbursement a/c (P&L)

(posted as debtors/receivables)

Bank a/c

To H.O a/c

(once Reimbursement is done)

H.O books;

expenses invoice a/c

To Payables/India Company a/c

(invoice received by head office)

Payabls/India co. a/c

To Bank a/c

(when head office clears payments)