What is Inter Company Reconciliation?
Answer Posted / vivek dubey
Intercommany Reconciliation is done for the paurchase or
sale of goods/services between two legal entities of a
parent company.
Reconciliation is done to find out the difference of amount
posted in the books of both legal entities.
For example: B ltd (France) and C ltd (America) are two
legal entities of a parent company XYZ ltd.
Now, B sold good to C for $1,000.00 and recorded the entry
in their book. However, C ltd when recieved the goods,
recorded the transaction for $960.00 only because of change
in currency.
While doing reconciliation it was found that there is a
difference of $40.00, so the system would record it as
adjustment entry for $40.00 to balance the ledger.
Is This Answer Correct ? | 122 Yes | 22 No |
Post New Answer View All Answers
Beginning Balance, Dec. 31, 20xx Creditable Income Tax 211,829.00 Income Tax Payable (132,808.00) > Balance 79,021.00 ITR (1st Quarter) - Jan. 31, 2016 - Mar. 31, 20xx Normal Tax (30% of Taxable Income) 2,205.02 MCIT (2% of Gross Income) 7,865.71 Aggregate Income Tax Due (Normal Tax vs. MCIT whichever is hihger) 7,865.71 Less: Tax Credits/Payments Prior Years Excess Credits 79,021.00 Creditable Tax Withheld - 79,021.00 Tax Payable, per return (71,155.29) What should be the entry in my book to record the above transactions? Thank you!
What items come under deferred tax liability?
where is applicable WCT & what is limitation for applicable it on company.
Ganesh & Gopal joined a firm drawing salary of Rs 25000 per month.After serving 3 yrs ,they started business of their own in partnership,contributing Rs200000(expected life 10 yrs,bought spare parts worth Rs 33000 from Kundu on credit.Office supplies were purchased for cash.Initially they were very busy in conducting their business operations but by the end of the 1st year,31/12/2005 they were disappointed when they found their bank balances.Following is the summary of their bank statement. Receipts: Share Capital Rs 250000 Collections from Customers 412000 Payments: Equipment 200000 Salaries of Assistants 88000 Rent advance for 2 yrs 96000 On-year ins. Policy on equipment 12000 Office stationery 27000 Payment to Kundu 29000 Withdrawals of Ganesh 90000 Withdrawals of Gopal 90000 Closing balance c/d 30000 ----------- Total : 6,62,000 Still amount receivable from customers for services to them amounted to Rs 30,000 & closing balance of office stationery is Rs2000,spare parts Rs2600 were utilised by the end of the year .Prepare trial balance with the available information and show total. Also what is the net profit.
Our firm is 7 years old. We don't have PT registration for partners as well as employee. If we do it now, will it be a problem or how much penalty will come. Any one can give suggestion.
What is the SEZ formalties in cement Industry?
What is FBT & Service Tax Remittances?
how we calculate the tds on salary.
we issued the H form for the 1st quarter 2014-15 but in the 2A we posted the wrong TIN no of party and H form is also contains the wrong TIN No.if anybody know the correct procedure for correction of H Form kindly tell us.
DEFINATION OF CONTRACT ACT IN PARTNER SHIP FIRM AND COMPANY?
What are the Treatment & Implications in interstate sales transactions if party is unregistered dealer & having Exemption Certificate or exempted.
please share fy 2017-18 salary tds auto matic excel utility
what is procedure of calculation of TDS by bank?
Rules for filling Income Tax return for a domestic manufacturing company.
Hai iam a VAT Registered dealer am a manufacturer and am going to sell my products to unregistered dealers i can pay d 4% vat.. how can i make my bill format for this sgrc.gy@gmail.com. anybdy kno means pls mail me.