How do I reconcile an intercompany account for a company that's been sold? The former parent company maintained bank accounts with positive balances but the subsidiary bank accounts were sweep accounts with a zero balance at the end of each day. So the parent provided cash to cover all the outgoing payments of the sub. The sub was then sold but some liabilities that remained were incurred prior to sale so were still the responsibility of the parent. They continued to fund the transfers to cover the liabilities so those incoming funds were recorded to intercompany as had been the practice in the past. However, there is no longer an intercompany relationship but I'm left with a huge I/C balance. So my question is, how should the incoming cash have been recorded or how do I eliminate the I/C balance?