Hi all,
my question is regarding how to post the dividend income in to the parent company A.
Company A Holding Company for Company B 100%
Company B is the trading business making profit.
Company B makes a bank transfer to Company A on a monthly basis depending on the income. And Company A uses those money to transfer to Company C and D to invest to expand its business.
How can i post these transactions
Thank you
V
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Replies (1)
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As your "question is regarding how to post the dividend income in to the parent company A" and you go on to explain that "Company B makes a bank transfer to Company A on a monthly basis", my answer is:
DR B/S Bank
CR P&L Dividend income (Sorry - I don't know the Sage account number)
with the amount received in Company A's books.
You say that "Company B makes a bank transfer to Company A on a monthly basis depending on the income" which might imply that a dividend is not formally declared each month. In that case, the postings in Company A would be:
DR B/S Bank
CR B/S Loan from subsidiary
If a dividend is subsequently declared, the posting would be:
DR B/S Loan from subsidiary (B)
CR P&L Dividend income
As to "Company A uses those money to transfer to Company C and D", the postings in Company A would be:
DR B/S Loan to subsidiary (C & D)
CR B/S Bank
I hope this helps.