Non allotment of shares and penalty thereof

Aravindakshan (Finance Manager) (27 Points)

31 March 2015  

Hello. A company has received funds from its foreign holding company towards further investment in the subsidiary's shares. But the allotment never took place. Instead, the subsidiary has treated this as a loan from the parent company and has adjusted the same towards expenes reimbursable by parent. What are the series of entries to be passed?