I have a company that has 3 separate books for one company. The auditor gave us a JE that would debit one companies account and Credit another companies account What would be my offset in each company to make them balance. Their was no cash exchanging hands. This was just to reflect disposals of fixed assets and true up depreciation expenses/accumulated depreciation. Would it be a intercompany account?
Example:
Company A - Equipment (fixed assest account) Credit $40,947
Company B - Equipment (fixed asset account ) Credit $3,734
Company B - Funiture & Fixtures (fixed asset account) Credit $542,500
Company B - Accum Depreciation Debit $504,416
Company A - Depreciation Expense Debit 2,178
Company A Equipment Credit $62,419
Company A Bldg Improvement Credit $2,307
Company B Gain Loss Disposal Debit $554
Company C Accumulated Depreciation debit $120,413
Company C General & Admin Debit $22,346
