Passing entries

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166 Points Joined March 2023

My owner having travel business and students hostel business, he transferred amt from travel business to hostel, how we make entry, pls explain

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On 12 March 2025 at 22:41 Report
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Master in Accounts & high court Advocate
9610 Points Joined December 2011

When your owner transfers an amount from the travel business to the students' hostel business, you'll need to record this transaction in the accounting books of both businesses. Accounting Entries: Assuming both businesses are separate entities, here are the accounting entries you'll need to make: *Debit and Credit Entries:* 1. *Travel Business (Debit)*: - Debit: Hostel Business Account (or Inter-Company Transfer Account) - Credit: Cash/Bank Account 2. *Hostel Business (Credit)*: - Debit: Cash/Bank Account - Credit: Travel Business Account (or Inter-Company Transfer Account) *Journal Entries:* 1. *Travel Business*: Journal Entry: Debit Hostel Business Account ₹ [Amount] / Credit Cash/Bank Account ₹ [Amount] 2. *Hostel Business*: Journal Entry: Debit Cash/Bank Account ₹ [Amount] / Credit Travel Business Account ₹ [Amount] Additional Considerations: 1. *Inter-Company Transfer*: If the transfer is treated as an inter-company transfer, ensure you follow the correct accounting treatment and disclose it in the financial statements. 2. *Tax Implications*: Consider the tax implications of the transfer, such as GST or income tax, and ensure compliance with tax laws and regulations. 3. *Financial Reporting*: Accurately reflect the transfer in the financial statements of both businesses, ensuring compliance with accounting standards and regulatory requirements. Consult with a chartered accountant or financial advisor to ensure accurate accounting and compliance with all regulations.

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On 13 March 2025 at 14:42

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