Past exam paper Joey of dec 14

Sir can you plz help me i Joey Part B. The employees of the Subsidiary hulty and margy get shares of the parent Joey immediately. Sir can you plz help me with individual financial statements. In the answer, the Subsidiary debits P/L and credity equity.
Sir why will it debit P/L when the Subsidiary has occured no cost and also why it credits equity when Subsidiary does not issue any of its own shares.