The equity account balances of Shiram Company and its 100% owned subsidiary, Bombay Inc. at December 31, 2014 are as follows: The consolidation worksheet eliminations at December 31, 2014 will include:

Question

The equity account balances of Shiram Company and its 100% owned subsidiary, Bombay Inc. at December 31, 2014 are as follows:  The consolidation worksheet eliminations at December 31, 2014 will include:

Quizplus · Accepted Answer

The elimination entry would be a debit to the Share Capital - Bombay account for Rs3,165,000 because this amount represents Bombay's equity that is attributed to the parent company, Shiram. There would be no entries to adjust the Share Capital or Retained Earnings accounts of Shiram since these are already fully consolidated. Similarly, there would be no entries to adjust the Retained Earnings account of Bombay since this is a subsidiary-specific account and not consolidated.

The Equity Account Balances of Shiram Company and Its 100