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Sir if we sell an investment property to A Co. and against it we have received 10% shares in that Co. Than will the entry be ??
(Financial asset Dr.
Investment property Cr.)And if we have received 80% shares against the investment property than will the entry be??
(Good will/Investment in sub Dr.
Investment property Cr.)And if we received 30% shares on selling than will the entry be??
(Investment in assosciate Dr.
Investment property Cr.)Please tell me that are these entries correct or wrong and if it is wrong than can you please tell me that what is the correct entry and why???
Dr Financial asset Cr Investment property – using FV of shares received. Gain or loss to P&L.
Goodwill will only arise in the consolidated accounts which are not part of double entry.
So you are saying that if we receive 80% shares agianst investment property than the entry will be.
Investment in subsidiary Dr.
Investment property Cr.Ans what about the associate entry, is it correct???
If it’s an associate then Dr Investment in Associate.
But equity accounting will not be applied until you prepare your group accounts, which are a completely different set of accounts.
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