CA Sahil Singla.. (Service Tax ) (3746 Points)
07 July 2011Question is related to consolidated Balance sheets as per AS 21-
In case dividend is proposed by Subsidiary co., & same is included in debtors of Holding Co. as it's receivables , then what is the need of deducting the same amount in balance sheet from debtors ? how this is a contra item ?
m U d I t
(student)
(108 Points)
Replied 07 July 2011
see sahil
when dividend is declared by the subsidiary you must have done this entry in holding co books
dividend receivable a/c (asset side of holding) dr
to p&l a/c
and in books of subsidiary it is standing as
p&l approation a/c dr
to dividend payable a/c (liability side of subsidiary)
to cancell both these in consolidated balance sheet u have to pas this entry on date of consolidation
dividend payable a/c dr
to dividend receivable a/c
( being our dividend receivable cancelled with dividend payable of subsidiary )
hope ur query is resolved or else u can contact me at muditrastogi1988 @ gmail.com
Excel Mastery Program
CAclubindia
