Inter company transaction

This query is : Resolved

Gajendran (Querist)
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19 September 2012 DEARS

Kindly explain with entries for following eg.

If A company make cash sales, that cash deposited in company B a/c. In this case company A shows cash balance Dr. But in company cash balance show cr.

Explain how to reconcile

CA. Vikash Chandra Jaiswal

CA. Vikash Chandra Jaiswal (Expert)
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19 September 2012 Dear your query is not clear. please specify the relation between Company A & B.
Presently it appears that both are parent & subsidiary co. In this case at the time of consolidation the balance will be taken care.