Services revenue xxx CR Services expense xxx If payablereceivable balances also

Services revenue xxx cr services expense xxx if

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Services revenue xxx CR Services expense xxx If payable/receivable balances also exist, these balances must be eliminated on consolidation
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The consolidation journal entry to eliminate intragroup balances in payable and receivable accounts is: DR Payable (loan) xxx CR Receivable (loan) xxx To eliminate interest revenue and expense recorded during the year by each entity: DR Interest revenue xxx CR Interest expense xxx Intragroup borrowings
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Assume B (a wholly owned subsidiary) declared a dividend of $100 to A (parent) out of post acquisition profits Journal Entry in B Journal Entry in A DR Div. declared 100 DR Cash 100 CR Cash 100 CR Div. Revenue 100 Journal Entry on consolidation DR Div. revenue 100 CR Div. declared 100 Intragroup dividends
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Where post acquisition dividends are declared (but not yet paid) the treatment is as follows: Journal Entry in B Journal Entry in A DR Div. declared 100 DR Div. receivable 100 CR Div. payable 100 CR Div. revenue 100 Journal entries on consolidation DR Div. revenue 100 CR Div. declared 100 DR Div. payable 100 CR Div. receivable 100 P&L effects B/S effects Intragroup dividends
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What if A only owned 60% of B? Assume B declared a dividend of $100 (in total) out of post acquisition profits Journal Entry in B Journal Entry in A DR Div declared 100 DR Cash 60 CR Cash 100 CR Div. revenue 60 Journal Entry on consolidation DR Div. revenue 60 CR Div. declared 60 Intragroup dividends
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