Paying some taxes on behalf of the parent company and its subsidiaries: how does the parent company calculate the payment to its subsidiaries? or vice versa, Dallas to the auditorium Why are you doing

Paying some taxes on behalf of the parent company and its subsidiaries: how does the parent company calculate the payment to its subsidiaries? or vice versa, Dallas to the auditorium Why are you doing this? In fact, it is a kind of capital lending behavior in which the parent company and its subsidiaries pay each other (whether paying taxes or not). That is, it does not involve trading activities such as buying goods and services.

Therefore, the prepayment party (set as Y company) carries out accounting.

Debit: other receivables -x company.

Loans: bank deposits

Prepayor (set as company X)

Debit: corresponding expenses or current accounts, such as individual tax, enter: tax payable-personal income tax (according to the new accounting standards)

Loan: other payables -y company

Why are you doing this? Because you paid a sum of money. If it is shopping, it generally corresponds to the debit of raw materials (inventory goods) and the credit is bank deposits. Now that you pay for another company, you are in debt. This claim has nothing to do with the purchase of goods and services, and can only be recorded as "other receivables". On the contrary, the company also formed liabilities, so it entered "other payables"