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Accounting
Intra-group balances
On consolidation
Dr Bills Payable (S) 6,000
Cr Bills Receivable (P) 6,000
On consolidation
Dr Bills Payable (S) 4,500
Cr Bills Receivable (P) 4,500
Amount eliminated is limited to the unpresented amount.
BANK
P S
On consolidation
Dr Loan from P (S) 6,000
Cr Loan to S (P) 6,000
In P
(a) Bring the inter-company balances to the same amount,
Dr Cash in transit 2,000
Cr Loan to S 2,000
On consolidation
(b) Dr Loan from P (S) 4,000
Cr Loan to S (P) 4,000