Transferring money between our companies?

[IPtelecom]

Hi everyone, new boy here,

Myself and my business partner run an IP telecom company so I hope to be helpful on the telecom and IT forum but I'd like to start with a question if I may:

We have a company (A) that is currently trading healthily and another company (B) that no longer trades and still owes the bank some money. We want to transfer some money from company A's bank account to company B's account to pay off the money owed to the bank by that company.

What is the correct way to do this from an accounting point of view and would there be any potential problems?

Cheers!

[jim_price]

It is a pretty straight forward transaction in itself. You would simply record in an inter company account in both sets of books. I assume the shareholders are the same in both companies? Thinking more creatively does company B have any tax losses? Could it justify any charges to company A for which it might receive payment?