Confusing Inter-company Transactions

USA Discussion in 'Technical Queries' started by Di50, Jan 24, 2019.

  1. Di50

    Di50

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    Company #1 pays medical insurance for Company #2. One of the owners of company #2 takes net income distributions on a monthly basis and his medical insurance is deducted from that. I have a "due to" liability account to book the amount due to company #1 but I don't know where to book the debit since it is being paid in full and isn't a company expense.
    I am trying to clean up the entire year of 2018.
    Thanks
     
    Di50, Jan 24, 2019
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  2. Di50

    kirby VIP Member

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    Your post's title is correct. I am confused by the post. Help us by showing example entries that are identified as being in Company 1 or Company 2. Then you should be able to show that 1 or 2 has the due to liability. Sounds like it is in 2 but I'm not sure from the post.
     
    kirby, Jan 24, 2019
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  3. Di50

    Di50

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    I will do that. Thanks
     
    Di50, Jan 25, 2019
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