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What is intra Company transactions? With an example
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Answer Posted / koteswara rao
intra company transaction means transactions occured the two
companies with in the same group that means one company
purchased and another company sales with in the group only
that is the intra company transaction
for exp
a@b group
in this a company purchase meterial and b company sales the
meterial
| Is This Answer Correct ? | 6 Yes | 16 No |
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Raj & Raj Ltd purchased a machinery on 01.01.1996 for Rs.88,000.The life of the machine estimated to be 5 Yrs.It was calculated that the old machinery would fetch Rs.8000 at the end of its useful life.it was decided to replace the machinery at the end of the 5th year by setting up depreciation fund and invest the annual depreciation (along with interest earned each year) in gilt edged securities carrying interest at 5% p.a. At the end of the 5th Year the securities were sold for Rs.9000.As per the sinking fund table Rs.14,478 is to be invested every year.A new machine was purchased on 01.01.2001 for Rs.1,00,000.pass the journal entries and show the ledger accounts
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