Debentures in Subsidiary Companies

Debentures of subsidiary company are held by holding company which are shown under the head ‘Investments’ in the Balance Sheet of holding company. These are to be eliminated while preparing Consolidated Balance Sheet. But if there is any difference between the cost price and paid-up value of Debentures, the same will, however, be adjusted against Cost of Control or Goodwill Account. Similarly, if there is any outstanding Debenture Interest, the same also will be adjusted.