question archive Pacquired 85% of S
Pacquired 85% of S
Subject:AccountingPrice:2.84 Bought3
Pacquired 85% of S. during the year, S reported net loss 10000 JD and declared dividends 4000 JD. P uses equity method. The eliminating entry for equity income:
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1.Eliminating entry for Equity income
For dividend
Cash a/c...................Dr 3,400 JD
To Investment in S 3400 JD
For loss
Loss on investment a/c................ Dr 8500JD
Investment in S a/c. 8500 JD
