Posting the entry

Company A gets a loan and bought a Fixed Assets and given the FA to other Company B.

Both are related party and separate legal entity.

What will be accounting treatment in both Company's

Replies (3)
Quick Summary
This discussion explores the accounting entries for a fixed asset purchased by Company A with a loan and then transferred to related entity Company B. Initially, the entries involve debiting the asset and crediting the loan/vendor. Upon transfer, Company B is debited, and the asset credited. A follow-up clarifies that Company A retains ownership, leading to the suggestion of treating it as a lease arrangement.

For Company A :

When a loan is taken -

Bank A/c Dr

    To Loan Liability Cr

When FA purchased -

FA A/C Dr

   To Vendor Cr

When FA has given to Company B -

Company B A/C Dr

    To FA Cr

 

For Company B :

When FA Received -

FA A/C Dr

    To Company A Cr

Thanking you,

In light of the suggestion following are the followup

the Ownership of the FA is still company A. 

Do we need treat as investment in Company B by Company A, or treat it as normal transaction,

because the loan payment will done by company A

 

 

 

 

 

Ok. In that case, you can treat it as - property given on lease basis.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
16 September 2026
Internal Audit - Team Lead

Consulting & Beyond

Chennai

CA

View Details
Company
Featured ARTICLESHIP 06 October 2026
Semi Qualified

AJAY SINGH AND CO LLP

Thane

CA Final

View Details
Company
ARTICLESHIP 28 September 2026
Junior Accountant

J S P M & Associates LLP

Pune

B.Com

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
14 October 2026
Asst. Manager/Dy Manager (Costing)

manufacturing

Pune

CMA

View Details
Company
06 October 2026
Assistant Manager - Audit and Compliance

Ravi K Jain & Co

Noida

Others

View Details
Company
Featured 21 September 2026
Consultant - Reporting

Finrep Advisors LLP

Mumbai

CA

View Details