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• # 89545
• Fri 22 Mar 2013 08:20 AM

Hello,.....again!

Would someone please be able to answer the following question for me please?

Company A has received an Invoice for an alarm system, and paid that invoice wholly. The invoice is for an item that relates to both Company A and Company B (in same building, owned by same people) a 50:50 split, although its addressed to Company A.

How would i show the expense / fixed asset in Company B, and reduce the cost in Company A?

Does it all depend on who the invoice is addressed to? I just dont have a clue!

Thanks 

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• # 89551
• Fri 22 Mar 2013 10:43 AM

Check with the owners of the company first if they require the asset to be split over both companies.  I currently work with companies owned by the same people and often assets are only assigned to one company.  If they do require it to be split you should have an interco nominal code on the balance sheet in both companies.  You can then post 50% of the net value to the interco account in Company A and then do a journal in Company B crediting the interco account debiting the fixed asset account.

Hope this helps. 

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• # 89553
• Fri 22 Mar 2013 10:45 AM

Hi,

Firstly, who owns/rents the building?

If it is Company A then they raise an invoice to Company B for the 50% share incl Vat - showing Vat if Vat Reg.

If you are saying it is an asset then providing Company A own/rent building then it is their asset in total.

It does not become an asset in Company B but merely an expense item.  

If Company B own/rent the building the easiest option is to ask supplier to change the invoice to their name and proceed as above but reverse companes - eg raise invoice to Company A for 50% etc.

Marilyn

• A clever person solves a problem.

  A wise person avoids it.

  Albert Enstein

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• # 89556
• Fri 22 Mar 2013 10:59 AM

Thanks very much for your reply's. Thinking about it i cant actually remember what the invoice was for, asset or expense. (I thought it was for an alarm system but i could be wrong) In any case i think i get the idea of re invoicing Company B for their share. Thanks again.

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