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 Audit interview questions  Audit Interview Questions
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Question
company A is parental company of company B.if company A 
pays rent for company B to landlord,What will be the 
journal entry recorded in the books of company A and 
company B?
 Question Submitted By :: Satya
I also faced this Question!!     Rank Answer Posted By  
 
  Re: company A is parental company of company B.if company A pays rent for company B to landlord,What will be the journal entry recorded in the books of company A and company B?
Answer
# 1
Inthe Books Of B Entry will be
   Rent A/c .... Dr
       To A A/c
(as rent paid by A co in behalf of B Co )

Inthe Books Of A Entry will be

   B A/c ..... Dr
       To Cash/ bank A/c
(payment of exp behalf of b a/c )
 
Is This Answer Correct ?    12 Yes 1 No
Sumit Talekar
 

 
 
 
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