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    pencilpusher's Avatar
    pencilpusher Posts: 11, Reputation: 1
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    #1

    Nov 5, 2009, 09:14 AM
    Asset transfer journal entry
    For the Parent company, what is the correct journal entry to transfer fixed assets to the subsidiary?

    DR - Capital Distribution (Equity)
    CR - Equipment (Asset)

    Or

    DR - Investment Interest in Subsidiary (Asset)
    CR - Equipment (Asset)

    Or

    ??

    Please help.

    Thanks,
    PP
    Puzzman's Avatar
    Puzzman Posts: 7, Reputation: 1
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    #2

    Nov 6, 2009, 03:35 AM

    Sorry I can't give you exact advise, as I only have experience with the New Zealand/International Reporting Standards.

    But both are technically right as the first one in for when you hold a majority interest and second is for a minor interest.
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