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?
5 Replies
satish
(teaching)
(2046 Points)
Replied 21 December 2018
see here discounted bill - amount is payable to banker. so no need to adjust after cfs. better to maintain as bills payables.
when endorsed bills also you need to maintain amount under bills payables only
above 2 cases bill amount payable to outers, even after consolidation.
bills sent for collection and bills held in our hand for maturity cases- disclosure is required under balance sheet.
under current assets:-
bills receivables : total
less: bills payable- total
under current liabilities:-
bills payables. . - total
less: bills receivables. - total
when endorsed bills also you need to maintain amount under bills payables only
above 2 cases bill amount payable to outers, even after consolidation.
bills sent for collection and bills held in our hand for maturity cases- disclosure is required under balance sheet.
under current assets:-
bills receivables : total
less: bills payable- total
under current liabilities:-
bills payables. . - total
less: bills receivables. - total
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