A client has several funds and at times needs to make a transfer between the funds. The balance sheet is simple, cash to cash. But the profit and loss statement isn't as straightforward. Where do I post the entries so that net assets will balances against Assets - Liabilities?
E.g.
Dr. Cash - Fund 1
Cr. Cash - Fund 2
Dr. Intercompany transfer?
Cr. Intercompany transfer?
The transfers are for internal transactions are eliminated and offer little useful information to the client. One is a fee based on monthly revenue - each month B gives Admin Fund 10% of revenue. Another is purchasing product that was expensed under another account - B purchases expensed product from Admin.
E.g.
Dr. Cash - Fund 1
Cr. Cash - Fund 2
Dr. Intercompany transfer?
Cr. Intercompany transfer?
The transfers are for internal transactions are eliminated and offer little useful information to the client. One is a fee based on monthly revenue - each month B gives Admin Fund 10% of revenue. Another is purchasing product that was expensed under another account - B purchases expensed product from Admin.