Pls help accounting rules for inter company transactions

CA Ashik Ali (Chartered Accountant) (97 Points)

21 February 2012  

Hi frens. Our company is one of the subsidary(A ltd) of principal company. The principal company has 2 subsidaries.(A ltd& Bltd) Purchases for both the subsidaries are made centrally in (B ltd). But sales are done seperately. How to account for such transactions? Is it possible for inter company transfers? help me with entries too.