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.director Remuneration
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 ?
Replies (1)
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
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
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