Accounting and consolidating entry

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This is because the net change in the financial statements is

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In the event of consolidation or amalgamation of two companies, the loan is merely a transfer of cash, and thus the note receivable as well as the note payable is eliminated.

The elimination of intercompany revenue and expenses is the third type of intercompany elimination.

Types of intercompany eliminations Generally, elimination entries are made for removing the effects of intercompany transactions.

There are, basically, three types of intercompany eliminations as follows: This type of elimination entry is performed when the parent company makes a loan to the subsidiary and the parent company and the subsidiary possess a note receivable and a note payable respectively.

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The revenue generated from one legal entity is offset by the expenses in another legal entity.

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If you don’t like reading, you can skip to the end of this article and watch my video.

In the event of consolidation or amalgamation of two companies, the loan is merely a transfer of cash, and thus the note receivable as well as the note payable is eliminated.

The elimination of intercompany revenue and expenses is the third type of intercompany elimination.

Types of intercompany eliminations Generally, elimination entries are made for removing the effects of intercompany transactions.

There are, basically, three types of intercompany eliminations as follows: This type of elimination entry is performed when the parent company makes a loan to the subsidiary and the parent company and the subsidiary possess a note receivable and a note payable respectively.

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