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Disposal of a sub

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Disposal of a sub

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by AvatarP2-D2.
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    Posts
  • September 25, 2019 at 3:13 pm #547373
    Avatarlesleyaj
    Member
    • Topics: 1
    • Replies: 6
    • ☆

    Hi,

    If a parent owns 100% of a sub which they are disposing of due to the Sub ceasing trading, what journals do we do? All of the examples shown are for Subs being sold etc, but if it’s not being sold what journal entries do we do for Share Capital, Retained earnings and cash the Sub currently has?

    Thanks.

    September 26, 2019 at 10:23 am #547442
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7235
    • ☆☆☆☆☆

    Hi,

    You don’t need the journals for this in the exam, similar with that you don’t need them for the acquisition.

    Thanks

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