Hi...
I am accountant of company A, Company A has a sister concern company B, Company B has not any work, but it is activated, A is using mobile phone Sims of B, and A also made payment of that mobile bills.
Here who can put expenses of mobile bills of company B...?
First of all Mobile Phone Connections are registered on the name of Company B therefore Company B should book the expenses and afterward raise debit note over Company A for using Company B's telephone services by Company A
Accounting Entry.
Telephone Expenses A/c Dr. xxxx
To Mobile Company A/c xxxx
(being Mobile bill accounted for the month of xxxx 2013.)
Company A A/c Dr. xxxx
To Telephone Expenses xxxx
(being telephone expenses apportioned to company A based on telephone usage).
CAclubindia
