Answer / sumit talekar

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 )

Answer / kanika

if rent is due
in Book of A
Rent a/c dr.
to b a/c

in book of B
A a/c dr.
to rent a/c

if rent is paid
in book of a
rent a/c dr.
to cash a/c

in book of B
cash a/c dr.
to rent a/c

Is materiality by fund balance or transactions?

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