I am working In Maldives..really confused in some transaction nature...pls advice me....
simplifing my question with an example...
question is there are 2 different companies having a same Board of Directors,Company A amd Company B.
Company 'A' is in a good profit .But ,B, is in a loss.
Every month Company 'A' giving money to "B' to meet monthly unsufficient cash for B' monthly expences.
1.My question is How 'B' will treat the financial help from' A' ,ie,like a loan or Income or waht else...
2.If as a loan after a few years 'A' deciding to write off loan given to 'B', how will be Accounting entries...in both companies books of accounts.....
Thanks in advance..
Renjith S Nair
CAclubindia
