Receipt of Fund

Sir,

We had sold materials to Company X but received the payment from Company Y which is sister concern of Company X. Shall we adjust this amount agaisnt company X through passing journal entry in our books or there is any statutory provision against such kind of receipt ???
Replies (1)
Till ,I know,there is no prohibition in this regard ,Subject to Company Y is not a Related party to your company in anyway ,However ,Even for precautions ,You should Issue Invoice In name of Company Y ,While Company X will be shown as Consignee to order ,If invoice is already issued ,then for safe side ,you can come into agreement with Y ,or issue debit note to Y ,clearly indicating Name of consignee , Descripttion of goods ,qty,payable amount ,etc.duly acknowledged by Company Y's authd. person ...

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