A client loaned a wholly owned subsidiary £50k

How do I account for writing off a loan to a wholly owned subsidiary?

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Say a client Co. loaned a wholly owned subsidiary £50k last year. This year they received £47.5k dividends from the Company and wrote off the £50k loan so £2.5k loss in balance sheet. Smells fishy to me. If OK, loss goes to Loss on investment in subsidiary?

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By Ruddles
15th Sep 2023 11:36

You would need to provide a lot more information before anything approaching a helpful answer could be given.

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