Dears
Company A,B&C are benefitted by the Govt due an order of tax relxation.In lieu of this, the govt asks 3 companies to share a charity project worth USD 45 Million under the supervision of company A with an equal share of cost (1/3 each). Now comany B handed over its share of investment of USD 15 million to the lead Co A.What will the entry in Comapny A. Also need entry in books of company A who spend USD 1 Million for the capital cost.
In the Books of B Company
Dr A Company
Cr Bank A/c
1/3 share of project paid to A
in the books of A Company
Dr Bank A/c
Cr B Company
Dr Charity Project a/c
Cr bank
if it is investment thn following entry will be passed...
in books of A
Invetment In Charity Project A/c Dr.
to Bank/ B's Account
in books of B
Bank/ A's A/c Dr.
to Investment in Charity Project
and if i haven't understood ur que. properly then please elaborate it...
i'll surely reply..
CAclubindia
