10 December 2009
If one Subsidairy (A) has sell assets to subsidairy (B) Cost Rs 1000 + Profit Rs 500. the holding Company has 51 % shares in both the Co. total profit of subsidairy A is Rs 2000.
At the Consolidation we have to remove intra group transation, so we have to eliminate something.
My question is that - Subsidairy A 1) How much to eliminate, 2) from where to eliminate 3) How much profit to be given to Minority 4) Please show via journal entry.
10 December 2009
At the time of consolidation need to remove complete 500 from the consolidated books.. and its eliminated from consolidated books.. minor will not get any thing.. Because in consolidated books there is no transaction..
CAclubindia
