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March 2023
March 2023
Hi,
I am the bookkeeper for two seperate businesses that are owned by the same person. Therefore I have two seperate MYOB company files. The owner has only just purchased the new business.
Occassionally one company (business A) might pay for the expenses of the other company (business B) and visa versa.
Can you please tell me what manual journal I should use to capture this? I believe I have to place it to a loan in Business A then enter it into Business B via a loan account (via a journal entry).
Some guidance would be appreciated.
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March 2023
March 2023
Hi @MichASR
Thanks for your post. One way to handle this situation is to create loan liability accounts for each company. So in Company A create a loan liability account for Company B and in Company B create a loan liability account for Company A. Make sure the Account Type is Credit card.
When Company A pays a Company B expense:
In Company B the expense will be correctly recorded as an expense of that business without affecting the bank account. In Company A the bank account will show the payment made without affecting the P&L. The loan liability accounts also allow you to keep track of the amounts each company 'owes' the other.
If Company B reimburses Company A:
Please let me know if you need further help.
If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.
Cheers,
Tracey
Previously @bungy15
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April 2023
April 2023
Thankyou!