UK Elimination of inter-company sub-contractor


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Sep 23, 2019
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Hi,

The advance payment will made by subsidiary to its staff. (Cr Subsidiary bank A/C , Dr Advance-staff)

Then when the staff bring its member to carry out the contract at Holding Co. , he may occur the related expenses and he use
the advance money to pay all his related expenses. (Cr Advance-staff, Dr sub-contractor (Holding Co.)

However, the project not yet final, and may be subject to finalised in next financial year end.
Thus, no entry being made in Holding company individual account.

So, is it the Holding Co. individual account need to take into account the differences? As client may take into account the difference in next financial year
and we may not know what the exact amount is after contra with some expenses which is paid by the Holding company.

Thanks.
 
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