Movement of fixed asset from one company to other company(sister concern)

This query is : Resolved

Girish L A (Querist)
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27 June 2015 Dear all, Could anyone adive me the journal entry for the below situation. Mr X owns 2 companies(company A and company B) and he purchased to 2 Machines for business. however, he issued cheque belongs to Company A. As he purchased two assets for both the company could you please advise the journal entries to be posted in Company A and Company B.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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27 June 2015 Company A
Fixed assets Dr
Company B Dr
To Bank ac Cr

Company B
Fixed Asset dr
To company A Cr.

Palash Ghosh

Palash Ghosh (Expert)
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27 June 2015 Situation 1: if supplier issued Invoice in the Name of Company A and Company B separately.
Company A-
(i)Fixed Asset Dr.
To Supplier
(ii) Supplier Dr.
Company B Dr.
To Bank

Company B-
(i)Fixed Asset Dr.
To Supplier
(ii) Supplier Dr.
To Company A

Situation 2: if Supplier issued Invoice in the Name of Company A

You have to sell Fixed Asset from Company A to Company B.

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