Company A owns 70% of company B (Cost £4.2m). Company C owns 30% of Company B (Cost £1m). Company A owns 100% of Company C (Cost £6m). Company A therefore holds 100% of Company B indirectly and 70% directly. Company A is desirous of acquiring the 30% of shares held by Company C in Company B by way of share for share exchange for shares held by Company A in Company C. Thereafter Company C will be struck off.
What would be the accounting entries in the books of the three companies.