Apart from the inter-company indebtedness, we may also come across inter-company investments in shares or debentures. This situation is studied in the following situations:- 1. Shares may be held by the Transferee (Purchasing) company in the Transferor (Selling) company, or 2. Shares may be held by the Transferor (Selling) company in the Transferee (Purchasing) company, or 3. Shares may be [...]
In this article we will discuss about the accounting treatment of consolidated profit and loss account in the preparation of consolidated balance sheet, explained with the help of illustrations. Consolidated Profit and Loss Account: The consolidated Balance Sheet is prepared to show the financial position of the group. Similarly the object of preparing a consolidated Profit and Loss Account is [...]
Section 11 lays down the following minimum limit of paid up capital and reserves: (a) Banking Companies Incorporated Outside India: If it has a place of business in Mumbai or Kolkata or both ............... Rs. 20 lakhs If it does not have a place of business in Mumbai or Kolkata ............... Rs. 15 lakhs Further, every year 20% of the [...]