Deepak (Assistant Manager) (115 Points)
19 September 2013Hi...
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...?
Samrendra
(Asst. Manager- Internal audit)
(221 Points)
Replied 19 September 2013
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
