I have question on the following question on consolidation...
Company A has invested $100 in COmpany B in 1st quarter of 2007.At the end of 1st quarter of 2008, the plant is soldoff fully by company B for $200 and working capital is transferred to Company A.
Following is the trail balance of company B before sale.
Plant : $80(Debit)
Working cpaital $70(Debit)
Capital $100(Credit)
Retained Earning $50(Credit)
Company A considers this as total sale of investment. Company B books need to be closed and working capital has to be transferred to Compaby A.
What will be entried passed by Company A and Company B in BCS and ECC seperately.