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Interest Income on Intercompany Loan
Recording interest earned on money lent to a subsidiary or sister company.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Due from Related Party | Asset (+) | 500.00 | - |
| Interest Income (Intercompany) | Revenue (+) | - | 500.00 |
💡 Accountant's Note
To ensure 'Arm's Length' transactions, parent companies should charge interest to subsidiaries. This creates a receivable for the parent and a revenue stream.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.