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Rakhi Vasavada
Rakhi Vasavada, Financial Advisor
Category: Finance
Satisfied Customers: 4543
Experience:  Attorney and Financial Expert. Have specialization in Financial Laws.Practice experience of over 13 years
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I am preparing the accounts for a new company say company A.

Resolved Question:

I am preparing the accounts for a new company say company A.
Company B owns 17 ordinary shares in company A with full voting rights and has made a short term loan to company A.
Company C owns 8 "A" ordinary shares with no voting rights and has made a short term loan to company A.
Company D owns 75 "A" ordinary shares with no voting rights and has made a short term loan to company A.
Question: Do I show the loan from company B as a loan from parent undertaking and the loans from company C&D as other creditors?
Submitted: 10 months ago.
Category: Finance
Expert:  Rakhi Vasavada replied 10 months ago.

Dear Friend,

The shares being "voting" or "non-voting" will have no bearing on how you show the loans.

All these loans by Company A would be shown as "From Creditors" and the Companies B, C and D would be shown like any other creditors in the books of Company A.

I am sure this would help.

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Warm Regards,

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