Hi, we have started a new company. Since we haven't set up bank account yet. I've been entering deposits and payable from the other company. How do I account for this. How do I enter invoices in the current company for the new company? Am I allow to file HST paid and received from the new company to the current company. Please advise. SG
Internal transaction
Answers
If I am understanding you correctly; I just had to do this with my husband's construction company. He started a rental business and used the construction company to do work on it as well as used the construction company's check book to write checks out etc. What I had to do in the construction company was move all expenses / deposits to his equity (draw) account and go in the new company and record the expenses where they belonged.
This was the cleanest way my
Thanks Christine.
So I won't be showing any HST in the current company.
I should record this properly as soon as I started with the new company.
If the HST is in relation to the new company then yes you would want to report it in the new company. I would recommend getting the new company set up before getting too deep into transactions and recording them in this other company. Keeping separate business transactions is just cleaner. Maybe I don't fully understand but why would you want to enter invoices in the current company for the new company? Are these companies working together (e.g. my situation; the construction company does work on the rental company)?
1
Yes, everything is same except the name on the document.
But you are right I should record sales and payable in the correct company.
thanks again Christine.
Filed Under:
FP&A