What are the journal entries for an inter-company loan?
When loans and excess repayments occur between related companies, it is necessary to distinguish between principal and interest or capital returns. Based on a specific case (loan of 100,000, repayment of 150,000), this article explains the debit and credit entries and the handling principles for the 50,000 premium.
My boss has two companies: Company A and Company B. Company B takes a loan from company A in the amount of 100,000. After some time, company B returns 150,000.
What will be the accounting entry and what is the procedure of this extra amount 50,000?