I am working in a conglomerate where there are many companies under the same group of companies, all independent of each other operationally, though there will be money transfer from one place to another.
in this instance, I have an company who has additional cash and is transferring $2m to the holding company. What should the entries be for the entity transferring $2m to the holding company? It is not expected that money will be return from the holding company.
one colleague suggested
DR receivables $2m
CR cash in bank $2m
is this correct?
in this instance, I have an company who has additional cash and is transferring $2m to the holding company. What should the entries be for the entity transferring $2m to the holding company? It is not expected that money will be return from the holding company.
one colleague suggested
DR receivables $2m
CR cash in bank $2m
is this correct?
