What is Inter Company Reconciliation?
- 13 Answers
- 110285 Views
- Aditya Birla, Ernst Young, Infosys, TCS, Thomson Reuters, I also Faced
- E-Mail Answers
Answer Posted / gaurav
I think the question can best be answered with example :
Suppose Parent company has Branch in India as well in UK .
UK Branch engages India branch to work on a contract which
UK is having with its UK Client. At the end, Uk branch
would Invoice UK client say ie GBP 100 and share GBP 30
with India , India books Invoice GBP 30 to UK Branch @75 fx
on 16th of Month , India books would hit with 30 X 75=INR
2250 as Indian books needs to be prepared in INR.
At the end of Month UK branch shows 30 GBP as Payable ,but
at the end of Month if rate becomes 1GBP=INR80 , so india
books will show 28.125 GBP ( 2250/80) as receivables since
A/R is Balance sheet item and needs to be shown at Balance
sheet rate.
So here comes Intercompany reconciliation , we need to show
30 GBP as payables in UK books and GBP 30 in Indian books .
So post a fx entry of INR 150 thereby Dr A/R account and Cr
Fx A/c or some control a/c so as to reflect A/R in India
books as INR 2400 ( equivalent @80 to GBP 30).
| Is This Answer Correct ? | 26 Yes | 5 No |
Post New Answer View All Answers
We have paid service tax of March Bills on 30 March. we forgot to include some bills for service tax, now we can deposit the tax in april/may and how we enter the tax..in tally....
How do you plan to achieve these goals?
How to Prepare Balance Sheet for Annual Tax Assessment. Do You Have any Format, Please send on (Pankajica15@gmail.com)
Dear Sir, I am working in account department. I want to know, Why service tax rate is change in every type of service. For Example - Rent Bill Service Tax Rate - 10.30% Taxi Bill - Service Tax Rate - 4.12% Why it change
What is FBT? Is there any fixed rate of tax for all? or slab rate? pls give the detailed answer with examples. My e- mail ID: vijji_tv@yahoo.com
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.
Sir we have maintaint RG 23 Part I Excise Register manually but we can maintaint excise register in Tally erp 9 we tray but tally not show properly RG 23 Part I Excise register like manual. please guide & solve the problme.
what to in pro
Pls can you write briefly about procedure of Auditing of VAT, Service Tax and Central Excise?
I am an employee in a IT Company. While filling out the form it prompts to fill - Details of Tax deducted at source from Salary (as per form16) and then it again prompts to fill - Details of Advance tax and Self Assessment Tax. if i fill both the columns, i get end result as 2 times of Tax i paid and a refund.
i want about TDS full details with Limit,Rate and Entry in Tally ?
What is US Tax Accounts? Can I get any information where from I take full knowledge about US Taxation?
If a person purchased goods by paying vat but while selling no vat has been collected and if he is registering his firm under vat need to pay vat after registration?
What is the procedures for withdrawing of form C?
Provision for Service tax, Income tax and Sales tax
