Payment Received another company account

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This discussion addresses a common accounting query in Tally ERP9 where a payment is received under one company name (Panchal Engineering) for a sale made by another related company (Panchal Machinery). The user is seeking advice on the correct adjustment entry to reconcile the accounts. Options discussed include passing a cheque payment entry or a journal entry to credit the debtor and debit inter-company accounts. The relevance of Section 188 of the Companies Act, 2013, is also mentioned if there are common directors or shareholders.

Dikshit Shah

Dikshit Shah (Querist)
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21 May 2020 Dear Sir,

I hope all is good in lock down period sir i have one query.
i am using tally erp9 software we have two company like panchal ..... machinery and panchal ..... works . i am sale machine with name panchal machinery and payment received panchal engineering so please tell me about adjustment entry for account nill

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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21 May 2020 Either give a cheque and pass payment entry or pass journal entry crediting debtor and debiting inter company accounts.

c.bakshi

c.bakshi (Expert)
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22 May 2020 Moreover, if both the companies have common board of directors or shareholders, then Section 188 of companies act, 2013 also need to take into consideration

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