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Post Info TOPIC: company car query
emfconsultancy


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company car query
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Hi, I do bookkeeping for two seperate companies run independently by family members.  Here is the scenario:  Father from (company A) buys a car for his son (company B).  The vehicle is to be shown as an asset in company B.  I would be grateful if someone would confirm the entries to be made in each set of books.
Thanks



-- Edited by emfconsultancy on Tuesday 21st of April 2009 10:05:00 PM

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elaine
Dustin57


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Books for Company B:
Dr Assets
Cr Directors Loan Account

Books for Company A:
Dr Directors Loan Account
Cr Bank account (assuming vehcile purchased from company A bank account)



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"People who are exceptionally good in business arent so because of what they know but because of their insatiable need to know more"
emfconsultancy


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Thanks for that Dustin57. I tend to agree with you. Company A is fine, wasn't sure if the transaction should be posted to the directors loan account in company B.

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elaine
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