Answer / rajesh

Inter Company Reconciliation is must to prepare final accounts.

Example:
A & B these two companies are held by same person.

IF Fund not in the A's Bank account. So B' issue the cheque to A's Creditors on behalf of "A".
If your are not reconcile the intercompany. your liability will be more. you cannot meet working capital.
So, Inter company reconcile is must.

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