Repayment of loan of related company

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 August 2011 Company “A” was wounded up in 31.12.2010; Owners are “Jack” & “Jill”

Liabilities of Company “A” amounting to Rs. 100000 was paid by Company “B” on Feb 2011

Company “B” is owned by “Jack” one of the owners of Company “A”

As Company “A” is wounded up, the loan of Company “A” from “B” is paid in installments of Rs. 2000 by Company “C” from 01.03.2011

Company “C” is owned by “Jill” one of the owner of Company “A”

Now the requirement is repayment of loan, should not affect the financials of Company “C”
How?

CS Bijoy

CS Bijoy (Expert)

10 August 2011 Company A is owned by Jack and Jill, so the profit and loss of the company should be distributed between Jack and Jill, so the liability of company A is equally divide between Company B and Company C that is Jack and Jill, but in case of different capital ration of both in Company A than as per ratio of capital.

Querist : Anonymous

Querist : Anonymous (Querist)

11 August 2011 My requirement is repayment of loan, should not affect the financials of Company “C”
is there some way Company C can repay the loan and subsequently not affect its financials, like raising a loan or something like that...

Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2011 Company “A” was wounded up in 31.12.2010; Owners are “Jack” & “Jill”
Liabilities of Company “A” amounting to Rs. 100000 was paid by Company “B” on Feb 2011
Company “B” is owned by “Jack” one of the owners of Company “A” and will not share the liability
As Company “A” is wounded up, the loan of Company “A” from “B” is paid in installments of Rs. 2000 by Company “C” from 01.03.2011 (entire loan repayment will be made by this company)
Company “C” is owned by “Jill” one of the owner of Company “A”
Now the requirement is repayment of loan, should not affect the financials of Company “C”, meaning what are the entries to be passed in Company “C” books so that the loan repayment will not affect its financials, like treating it as loan or something

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2011 like quasi-loan or something, please advice me the accounting entries