I have to consolidate the B/S of 2 companies.
The holding is having Bills receivable of Rs. 50,000 which is owed by the Subsidiary having Bills payable of Rs. 50,000.
However, the holding co. has discounted bills of Rs. 20,000 with the bank and has sent bills worth Rs. 10,000 to the bank for collection and bills worth Rs. 5,000 have been endorsed to a supplier.
How should i adjust the Bills payable of the subsidiary and Bills receivable of the holding co. for the purpose of consolidated balance sheet?
BR BP
50 50
Less:
endo. 5 -
disc. 20 -
__ __
Balance 25 50
therefore 25 will be appeared as B.P in B/s of consolidated company.
CAclubindia
