How account financial aid-really urgent !!!!!!....

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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

 

Replies (1)

Loan from Co. A to Co. B

When you write off that loan, income will be generated for Co. B and expenses for Co. A.


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