Chart of Accounts

Company #1 gives a check to Company #2 and
Company #2 then sends check out to rental company.
The same people own both company #1 and #2. How should I show the check deposited in company #2 on the chart of accounts?

Comments for Chart of Accounts

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Apr 17, 2016
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asset or equity for a loan to B2B NEW
by: Anonymous

answer does not address the question.
For business #1, which category type to list in the chart of accounts?
Owners equity or asset for an unpaid loan?

Jul 13, 2011
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Transfers Between Businesses
by: Anonymous

I believe any money given to another business when both businesses are owned by the same people would be considered a loan. So the check deposited in company #2 should be shown as:

Debit Bank
Credit Loan from Company #1




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