What Is The Balance Sheet Category Of Inter Company Account?


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EX: Company A, B, and C are related entities. Company A is a new operating entity, and therefore needs more working capital to sustain. The owner of all of the related entities will transfer money from one company, say from Company B to Company A. Company B will then add this intercompany transfer as an asset to company B's statement (a receivable). They will list intercompany as an liability on Company's A balance sheet (an payable). That's how I have seen it.

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