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Receipt of Fund

C.A. Sandeep Wawhal (Chartered Accountant PGDFM BCom.) (1823 Points)

03 December 2019

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 ???

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Chirag (Professional) (1979 Points)
Replied 04 December 2019

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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