The asset was sold at a profit from one company to another through intercompany, and I would like to check the transactions involved for elimination. The subsidary is new so the selling subsidary recognised the profit in 2019 but the first accounts for the purchasing company and for consolidation of the group (The Selling company owns the purchasing company) will be in 2020.
Would the elimination transactions be as follows for consolidated accounts:
DR - Profit and Loss a/c Profit on disposal and CR - Fixed Asset Cost account
DR - Accumulated Depreciation for the additional depn and CR - P&L Depreciation account for the additional depreciation