Intercompany Chart of Accounts

Intercompany Chart of Accounts

Intercompany 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 Intercompany Chart of Accounts

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Dec 03, 2017
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starstarstarstarstar 		Loan B2B Categories
by: Stephanie

The JE for the business #1 transferring the money to business #2 would be:

DEBIT Loan TO B2B (Other Asset)
CREDIT Bank Account (Asset)

When business #1 receives payment back for the loan the JE would be:

DEBIT Bank Account (Asset)
CREDIT Loan to B2B (Other Asset)
CREDIT Interest Income (Other Income)

The JE for the business receiving the money would be:

DEBIT Bank Account (Asset)
CREDIT Loan FROM B2B (Liability)

When business #2 makes a payment to business #1 for the loan the JE would be:

DEBIT Loan FROM B2B (Liability)
DEBIT Interest Expense (Other Expense)
CREDIT Bank Account (Asset)
Apr 17, 2016
Rating
starstarstar 		asset or equity for a loan to B2B
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
Rating
starstarstar 		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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