if a director receives their salary form other own subsidiary company , then how can post JV of salary receivable entry and how to adjust with their capital account ?
From my understanding of the question the accounting entries will be
1. In the books of company (say A) in which the person is director. Salary/Director's remuneration A/c Dr. To Loan from Company B. (being remuneration paid to director of company A by subsidiary company B)
2. In the books of subsidiary company (say B) Loan to Company A A/c Dr. To Bank A/c. (being remuneration paid to director of Company A on behalf of company A by Company B)
3. In the books of Director Bank A/c Dr. To Salary/remuneration income A/c
CAclubindia
