Advanced financial accounting - Lecture 39 (Part 1). The main topics covered in this chapter include: journal entries; parent company; subsidiary company; parent co. balance-sheet; subsidiary co. balance-sheet; intra goods in trading;... Please refer to the lecture for details!
Advanced Financial Accounting Lecture-39 Journal Entries Parent Company Debtor subsidiary Co A/c 700 Sales A/c 700 Subsidiary Company Purchases Creditor P Co 700 700 Parent Co Balance-sheet Assets Amount Current Assets Debtors S Co 700 Subsidiary Co Balance-sheet Liabilities Amount Current Liabilities 700 Creditors P Co Journal Entries Parent Company Debtor subsidiary Co A/c 700 Sales A/c 700 Subsidiary Company Purchases Creditor P Co 700 700 Intra Goods in Trading Goods in transit Cash in transit Parent Co At Invoice Debtors S Co 200 Sales Income 200 Parent Co Balance-sheet Assets Amount Current Assets Receivables 700 Subsidiary Co Balance-sheet Liabilities Amount Current Liabilities 500 Creditors P Co Subsidiary Co Checque to Parent Co Creditor P & Co 200 Bank 200 Parent Co Balance-sheet Assets Amount Current Assets Revenue from subsidiary Co against sales 700 Subsidiary Co Balance-sheet Liabilities Amount Current Liabilities 500 Payable to the parent Co against purchases Consolidate Balance-sheet Liabilities Amount Current Liabilities Goods /Cash in transit 200 Group P Co Purchase Purchase 400 Sales 500 100 S Co Purchase 500 Sales 350 150 ... Subsidiary Company Purchases Creditor P Co 700 700 Parent Co Balance-sheet Assets Amount Current Assets Debtors S Co 700 Subsidiary Co Balance-sheet Liabilities Amount Current Liabilities 700 Creditors... Invoice Debtors S Co 200 Sales Income 200 Parent Co Balance-sheet Assets Amount Current Assets Receivables 700 Subsidiary Co Balance-sheet Liabilities Amount Current Liabilities 500 Creditors... Creditor P & Co 200 Bank 200 Parent Co Balance-sheet Assets Amount Current Assets Revenue from subsidiary Co against sales 700 Subsidiary Co Balance-sheet Liabilities Amount Current Liabilities