Open a new bank account, calling it 'X Ltd - Intercompany Loan Account'. Pay the invoice from this 'bank' account. When (if!) the money is returned to company X, you'll post it as a bank transfer from the (actual) Bank Account to this intercompany account.
In company X (the one who has paid the bill), you will also need to create a bank account 'A Ltd - Intercompany Loan Account'. The initial transaction will be a bank transfer from the actual Bank Account to the intercompany account. When (if) the moeny is repaid, it'll be another transfer - from the intercompany to the Bank.
This was a really helpful posting, however, i dont know if I am dog tired which is why i am confused. Can someone please elaborate on this. It was reagrding company 'A' paying company 'X' invoices.
Also company 'X' has paid company 'A' invoices do i put it through the intercompany loan ac as a receipt to reduce the debt??
I would create an intercompany account called 'company Y' and then post a journal between this and the bank. Then pay the invoice from the bank in the normal way which will leave the bank 'neutral'. It's not exactly what has happened in the bank, but it is a fix.
In the other company, create an intercompany account called 'Company x' and simply pay money fron the bank to this account.
These 'new' accounts should be in the creditors/debtors area of the nominal ledger and should be floating....i.e., they can be both creditors or debtors depending on the balance.
At the end, Company x will have a credit balance in ther account 'interco Company y' and Company y will have a debit balance in their account 'interco company x'.
