Transfer

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This query is : Resolved

prakash (Querist)

19 October 2015 Dear sir , we have two entity one is pvt. ltd. & other is firm . i want to know if one co. transfer money to other . then is it treated as loan or expense ?

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

19 October 2015 it will b obviously as loan.. why it will be expense... And reasons should be genuine

prakash

prakash (Querist)

19 October 2015 Thanks sir , these companies are in same tally and due to shortage of money we transfer. means it will treated as current liability .and for receiving co. It is treated as indirect income ? Is this correct sir ?

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

19 October 2015 nopes yaar... if for one company it is current liability then for others it will b current assets...

for one it is loan, for second it is advance received or loan received whatever dpeneding on the reasons of advance

prakash

prakash (Querist)

19 October 2015 Okay sir according to my reason stated above it will be current liability or current assets vice versa.
Because transfer made due to shortage of money .And both co. Of same owner .

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)

19 October 2015 bt you should avoid all these ... transfer without any reasons is not good

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