Journal Entries Help

[asadhlc]

EMAAT Associates has its head office in city ABC and a branch Office in city DEF.

XYZ is the principle whom they represent in respective cities.

At the end of the month the scenario is

ABC (HO) has to pay/settle XYZ - USD 100 and

XYZ has to pay/settle DEF (Branch office) - USD 50

Overall, ABC (HO) transfers through bank XYZ the NET USD 50.

What will be the relevant journal entries? Kindly help

 

[Triest123]

In ABC's book
Dr A/P - XYZ 100
Cr Bank (cash paid to XYZ) 50
Cr Amount due to DEF 50
(DEF settle the "A/P- XYZ" on behalf of ABC)

In DEF' book
Dr Amount due from ABC 50
Cr A/R - XYZ 50
(settled by the loan from ABC)

In XYZ' book
Dr Bank (cash received from ABC) 50
Dr A/P - DEF 50
Cr A/R - ABC 100


Overall Result of the Group :
Dr Expenses 100
Cr Bank 50
Cr A/R- XYZ 50