company A is parental company of company B.if company A pays rent for company

company A is parental company of company B.if company A
pays rent for company B to landlord,What will be the
journal entry recorded in the books of company A and
company B?

Question Posted / satya

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company A is parental company of company B.if company A pays rent for company B to landlord,What w..

Answer / sumit talekar

Inthe Books Of B Entry will be
Rent A/c .... Dr
To A A/c
(as rent paid by A co in behalf of B Co )

Inthe Books Of A Entry will be

B A/c ..... Dr
To Cash/ bank A/c
(payment of exp behalf of b a/c )

Is This Answer Correct ?

34 Yes

4 No

company A is parental company of company B.if company A pays rent for company B to landlord,What w..

Answer / kanika

if rent is due
in Book of A
Rent a/c dr.
to b a/c

in book of B
A a/c dr.
to rent a/c

if rent is paid
in book of a
rent a/c dr.
to cash a/c

in book of B
cash a/c dr.
to rent a/c

Is This Answer Correct ?

3 Yes

7 No

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