At the time of advance payment made by state institution, we will pass entry in books of state institution. So it will be standing as current asset in books of state institution.
While acquiring the state institution by central (100%) then all assets & liabilities will be transferred to central institution.
In that case, central institution already accounted the advance payment (through indirect way).
Now please pass the entry only for the settlement by considering advance.
Ok thank you sir.... but the particular amount of advance also included in generel reserve of the state insttution. so it is also effect the generve reserve balance of the central institution???
CAclubindia
