Intercompany current accounts-holding co.
This query is : Resolved
CA Abhishek Singh
(Querist)
10 February 2011
H ltd has two subsidiaries(Directly holding 60%,& 70% respectively) A ltd & B Ltd
Balance sheet H Ltd
Liability side
Current a/c with A ltd-Rs.40000
Current a/c with B ltd-Rs.40000
Balance sheet of A Ltd
Asset Side
Current a/c with H Ltd-Rs.36000
Balance sheet of A Ltd
Asset Side
Current a/c with H ltd-Rs.44000
Adjustment:
A remittance of Rs. 4000 by B Ltd to H Ltd has not yet been adjusted in the books of H Ltd.
Question : what will be the effect in the consolidated balance sheet & what is logic for opening current account ?
Balance sheet H Ltd
Liability side
Current a/c with A ltd-Rs.40000
Current a/c with B ltd-Rs.40000
Balance sheet of A Ltd
Asset Side
Current a/c with H Ltd-Rs.36000
Balance sheet of A Ltd
Asset Side
Current a/c with H ltd-Rs.44000
Adjustment:
A remittance of Rs. 4000 by B Ltd to H Ltd has not yet been adjusted in the books of H Ltd.
Question : what will be the effect in the consolidated balance sheet & what is logic for opening current account ?
11 February 2011
The current account has been named so by these companies to show the day to day transactions between holding company and subsidiary companies.While consolidating the accounts of these companies the effect will be given to all the balances of current accounts including the remittance in transit from B Ltd. to H Ltd.
Any further assistance pls do contact on kishore@kkpahuja.com
Any further assistance pls do contact on kishore@kkpahuja.com
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Tax on Amount transferred in HUF Account
- Nursery business
- Working on Gold wastage during Melting of old gold jewellery
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- GST REFUND ISSUE ON PURCHASE OF PLANT AND MACHINERY
- TDS on Dashcam rent and allied services
- GST input credit on commercial property
- Gift to nri relatives residing in usa
- Section 269ST applicability for capital introduced by partner to his partnership firm
- ETDS return q4 25-26
- GSTR-9C filing
- Royalty payments to the Mining Department for procurement of murum - GST input
- HOW TO ADJUST CREDIT NOTE AMOUNT ?
- Import Order Cancelled.
- WRONG GSTR7 ENTRIES ACCEPTED ERRONEOUSLY
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Tally: Imported bank entries do not show up in manual reconciliation
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
