| Originally posted by :I'm The Best | ||
| " | THERE ARE TWO SISTER CONCERNS A AND B. B TAKE A'S EMPLOYEE FOR SOME WORK FOR OUT OF STATION AND B BEARS ALL THE EXPENSES FOR THAT EMPLOYEE (SALARIED) SO IS B BOOKED THESE EXPENSES? IF YES SO UNDER WHICH HEAD OR IS A BOOKED THESE AND SEND A BILL TO B FOR THIS. | " |
In my view B should not book expense into his books of accounts. Since the expenses relates to A, it should book expense in its books of accounts and no bill should be raised to B.
BUT if an overall view is seen for the whole enterprise then there will be not effect on the profit whether A or B books the expenses. But individual performance will not be actually revealed.
CAclubindia
