Salary
This query is : Resolved
05 March 2011
our company is Holding company. It have 4 Susidiary Company and accounts department is shared service for all the 4 Company. The thing is Company " A" paid to salary of " B" Company employees Rs1,50,000. Then one week later the company "B" return that money to Company "A". So How to enter the Entries. i am in trouble. Please help
09 March 2011
While making payment to Employees of "B" Entry Will be as follows
1) Salary Exps. A/c Dr.
Salary payable A/c Cr.
(Book as Exps. of Company)
2) Salary Payable A/c Dr.
Bank A/c Cr.
(For making Payment)
3) B Company A/c Dr.
Salary Exps. A/c Cr.
(Reimbursement of Exps, from resp. Company)
At the Time of payment recd. from "B" Company, following entry will be passed
Bank A/c Dr.
B Company A/c Cr.
1) Salary Exps. A/c Dr.
Salary payable A/c Cr.
(Book as Exps. of Company)
2) Salary Payable A/c Dr.
Bank A/c Cr.
(For making Payment)
3) B Company A/c Dr.
Salary Exps. A/c Cr.
(Reimbursement of Exps, from resp. Company)
At the Time of payment recd. from "B" Company, following entry will be passed
Bank A/c Dr.
B Company A/c Cr.
09 March 2011
Thanks for your Reply
Can i made entry like following
For making Payment Company B
Company B Dr 150000
To Bank(Comp.A's Bank a/c)150000
( Being payment to B comapany employees salary)If any other supplier payment also do this entry.
Refund from Company B
Bank (Comp.A's Bank a/c)150000
To Comp.B's Bank a/c) 15000
(Refund recieved from Com.B)
At this time Company B will be Current Assets of A's Books. and Com.A will be Current liabilty in ccom.B books.
This entries right? tell me
Can i made entry like following
For making Payment Company B
Company B Dr 150000
To Bank(Comp.A's Bank a/c)150000
( Being payment to B comapany employees salary)If any other supplier payment also do this entry.
Refund from Company B
Bank (Comp.A's Bank a/c)150000
To Comp.B's Bank a/c) 15000
(Refund recieved from Com.B)
At this time Company B will be Current Assets of A's Books. and Com.A will be Current liabilty in ccom.B books.
This entries right? tell me
09 March 2011
Yes, U can pass entries this way.
If any supplier payment done by A company on behalf of B Company then also same entry will be passed
"B' Company Account will opened as Sundry Debtors under the head Current Assets in the books of A Company and "A" Company A/c will opend as Sundry Creditors under Current Liabilities in the books of "B" Company
If any supplier payment done by A company on behalf of B Company then also same entry will be passed
"B' Company Account will opened as Sundry Debtors under the head Current Assets in the books of A Company and "A" Company A/c will opend as Sundry Creditors under Current Liabilities in the books of "B" Company
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