Due To/from Account

Canada Discussion in 'General Accountancy Discussion' started by Lolo, Jul 16, 2017.

  1. Lolo

    Lolo

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    After posting an inter company expense a due to/from account was used and now bank accounts are not in balance in bank réconciliation. One is over and the other under.

    Which accounts needs to be debited and credited to return in balance?
     
    Lolo, Jul 16, 2017
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  2. Lolo

    Steve-LevelUp VIP Member

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    I think there might need to be some additional information.

    Le'ts presume Company 1 paid a $100 expense on behalf of company 2. The entry would be
    Cr. Cash
    Dr. Intercompany

    Company 2 would then record.
    Dr. Expense
    Cr. Intercompany.

    This should help determine the correct entry for the intercompany. Only the company that actually paid the expense should have a bank entry recorded.
     
    Steve-LevelUp, Jul 17, 2017
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