Dear Friends,
What will be the journal entry if a company has paid telephone charges on behalf of its sister concern company?
As I thinks,
If the accounts of both the company are maintained separately, then sister concern will be debited for telephone expense amount.
@ sunny
freind can you show me the journal entry in the books of both the company?
This is the case of Inter Co. transactions.The Co. which is paying charges on behalf of another co. will debit the A/c of that another co. in its books and will credit its Cash/Bank A/c..
The co. whose expenses are paid by the sister concern will journalise the following entry :
Telephone Expenses A/c------Dr.
To Sister Concern A/c (which has paid exp.)
@ KARAN
THNKS A LOT
JV in sister concern
Telephone charges A/c Dr
To parent company.
JV in Parent Concern
Sister Company Dr
To Telephone Charges
jv
telephone exp a/c --dr
to sister concern ( which paid exp)
Karan u r right!!!!!!!!!!!
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JV in sister concern Telephone charges A/c Dr To parent company. JV in Parent Concern Sister Company Dr To Telephone Charges |
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| Originally posted by : M.Varalakshmi | ||
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JV in sister concern Telephone charges A/c Dr To parent company. JV in Parent Concern Sister Company Dr To Telephone Charges |
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Debit the Sister concern account and Credit either Bank or Cash Account
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