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Intercompany Expense Recharge
Recharging a portion of a shared expense (like office rent) from the parent company to a subsidiary.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Due from Subsidiary | Asset (+) | 1,000.00 | - |
| Rent Expense | Expense (-) | - | 1,000.00 |
💡 Accountant's Note
When one entity pays a bill for the whole group, it 'recharges' the cost. This reduces the parent's expense and creates a receivable from the subsidiary.
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