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Accounting treatment for transfer of group cash

Two companies in a group, one is dissolved and the remaining cash is transferred to the live entity

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Is the cash treated as a capital contribution? What are the accounting treatment postings please?

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By paul.benny
08th Jun 2020 10:45

You'll have to help by giving a bit more information.

In particular, did Liveco own Dissolvedco - or are there other companies?

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By johngroganjga
08th Jun 2020 10:48

So, the company that was dissolved was a (wholly owned?) subsidiary of the continuing company?

The investing company has received the proceeds of the liquidation. Is that right?

You ask whether those proceeds should be treated as capital introduced by the now defunct subsidiary, or in some other way. Is that your question?

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