In consolidation of accounts of holding and subsidiary company__________ is eliminated in full.
Mutual indebtedness is eliminated in full because a consolidated entity cannot owe money to itself. External liabilities remain liabilities of the group, and all reserves…
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In consolidation of accounts of holding and subsidiary company__________ is eliminated in full.
Answer and explanation
Correct answer C
Mutual indebtedness is eliminated in full because a consolidated entity cannot owe money to itself. External liabilities remain liabilities of the group, and all reserves and surplus are not automatically eliminated.
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Jammu & Kashmir and Ladakh SET (JKSET/LASET)