Due To/from Account

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

  1. Lolo


    Jul 16, 2017
    Likes Received:
    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
    1. Advertisements

  2. Lolo

    Steve-LevelUp VIP Member

    Jul 18, 2016
    Likes Received:
    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
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.