the company which has 51% of its investment in another
comany,and also acquires controlling right on the management
inthe invested company.the holding company can purchase up
to 51% of its assets .the holding company may paid minority
interest to the other investors (i.e, 49% of share holders)
Owning 51% of of company's share doesn't mean you are the
owner, it is much more of a controlling interest, while the
other 49 are the minority interest. Holding company are
form to focus on managing its share to subsidiary company
while subsidiary focus on opration.
A company become holding company in 3 ways
1. owing 51% of share holding on other company(called
2. The company which have controling power on other company
3. A company become holding company for its subsidary
Eg: company C is subsidary of company B
company B is subsidary of company A
company C is subsidary of company A.
Accounting Question Help Please?
I would like to know how I should journalize this entry:
Credit invoice received from Sam's Trailors for a 10% price adjustment on
invoice #515, $1910
Please tell me what to debit/credit....purchase discounts, or purchase returns.