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.director Remuneration

11 October 2021

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 ?

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1 Replies

Kev Men (756 Points)
Replied 11 October 2021

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