Accounting entry query

Final 488 views 1 replies

Hello Friends,

Please tell me which entry should we passed?

Their are two compnies i.e A & B

On behlaf of B company, A company paid Earlier formation Expenses i.e on F Y 12-13 PAid the Expenses.

Now B Company wants to regosnised the Formation Company SO which entry should we passed.

 

Replies (1)

In A Co's books entry will be as below:

B Co A/c Dr

To- Bank/Cash

 

In B Co's Books entry will be as follows:

Formation Exp(under Assets)  Dr

To- A Co

At the time of pymt entry will be as follows:

A Co Dr

To- Bank


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