Company BUYINGSHARES bought 100% shares of Company BOUGHT (nominal value 10) for 50k which owned Land valued at £50k.
Company BOUGHT then transferred said Land to Company LANDTRANSFERREDTO (in same group as Company BUYINGSHARES and BOUGHT).
Are these the correct accounting entries for Company BUYINGSHARES
On Purchase of Shares:
Dr Investment in Company BOUGHT 50,000
Cr Bank 50,000
On transfer of property (in Company BOUGHT to Company LANDTRANSFERREDTO):
Dr Impairment 49,990 (where is this shown on BS?)
Cr Investment in Company BOUGHT 49,990
Leaving Investment in Company BOUGHT at nominal value of shares 10
Or do I ignore the transfer as Company BOUGHT is owed 50,000 by Company LANDTRANSFERREDTO for the transfer of the land.