Dr.Gunda Surendra (Audit Assistant) (24 Points)
14 September 2009I have a doubt about the treatment of Subsidiary company expenditure paid by the Holding company ( Foriegn Company) which has paid the expenditure in foriegn currency. How should i account and treat the expenditure? The subsidiary company has not started its business operations and still the construction is in progress. Please can anyone help me out in this?
Thank You.
mohamed
(Accounts Executive)
(26 Points)
Replied 17 February 2010
Even though the commercial operation is not started, entry will be in both the books.
Holding co books
Subsidiary co Dr (Foreign Currency * Exchange rate)
To Bank Account Cr (Foreign Currency * Exchange rate)
If you are receiving the same amount in future
Bank account Dr
Exchange loss/(gain) Dr or (Cr)
To Subsidiary Account Cr
In the books of Subsidiary
Bank account Dr
To Parant co Cr
and so on.
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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