Been Asked a question
Company A has Share Capital of 1000 (£1.00 across 4 share holders Shareholder A 40%, Shareholders B 30% and C & D 15%)
Profit & Loss Reserves are £1m
Company B a holding company wants to purchase the full share allocation from Company A for £750,000.
If this deal goes ahead what are account transactions to be shown in the wholly owned subsidary company and what is the effect on the share capital (if any) and profit & loss reserves?