For example if Parent owes Subsidiary $100. Receivable needs to deducted by 100, Payable needs to deducted by 100 We got 2 entries here so the figure is tally.
But while performing the consolidation for SOPL for Parent and Subsidiary. If the Parent SOPL consists of dividend received $100 from Subsidiary. We need to eliminate it. First step = “SOPL, Dividend received from Subsidiary $100 – $100 = $0” So where is the second entry for this?