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Holding & Subsidiary

Vipul Acharya (Account Officer) (646 Points)

05 February 2019

If Holding co. paid telephone bill of subsidiary by mistake how to rectify the and accounting entry for the same

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4 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14196 Points)
Replied 05 February 2019

Your first wrong entry will be

Telephone Expense ( subsidiary company) A/c Dr

To Bank A/c Cr

( Being telephone exp paid )

Your correct 2 nd entry will be

Telephone Expense ( Holding company ) A/c Dr

To Telephone Expense ( Subsidiary company) A/c Cr

( Being earlier entry corrected by debiting T.E. to Holding company .

satish (teaching) (2046 Points)
Replied 07 February 2019

in your case holding company exp to be reduce and amount of telephone exp is to be recover from subsidiary company.
subsidiary company a/c. Dr.
to telephone expenditure A/c

Vipul Acharya (Account Officer) (646 Points)
Replied 07 February 2019

OK, if we made the payment intentionally can we post below entries.

in Holding books -

Subsidiary Dr.
to Cash

In Subsidiary Books -

Telephone Exp Dr.
to Holding Co.