I wonder if anyone can help me with this - its been a while since I've dealt with consolidation accounting!
My boss wants me to map out a company acquisition whereby we buy the trade of another company by taking on their assets and liabilities in return for...
- £300K in consideration of exiting partners
- £200K in shares issued to transitioned partners
I'm assuming the shares issued are in the group company - would the double entry be Dr. Investments and Cr. Share Capital ?
Would the £300K be written off or classed as part of the investment?
What are the necessary adjustments on consolidation?