Payment Received another company account

Save Share

This query is : Resolved

Quick Summary

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)

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)

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)

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

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now