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Intercompany posting
I work for a multi unit company and I have the following to post and I need to know how to post:
2 companies: 1st company receives money that belongs to 2nd company. 1st company deposit sample $25.00 post to (due to account to 2nd company.) 2nd company money must be entered as income in 2nd company. I post journal entry for sales $25.00 and $25.00 to (due from $25.00). My questions is how do I post cash to show in my bank. Debit to cash and credit to? |
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The credit will go to the customer account
Company 1 will: Dr bank Cr Intercompany Creditor: Company 2 Company 2 should already have recorded the sale in the normal way: Dr Customer Account Cr Sales When Company 1 sends the money to Company 2 Company 1 will: Dr intercompany creditor: company 2 Cr Bank Company 2 will: Dr Bank Cr Customer Account |
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