Double entry - retained earnings

db141414

Hi,

I have a question regarding how to post this item for a set of company accounts.

so for year end 2013 we have company A, B, C, D, E. However in 2014 companies B C D E have ceased and all merged into A. For retained earnings brought forward would i take the totals from A + B + C + D + E, or would I just take A?

Thanks

zygurat789

db141414 wrote: »

Hi,

I have a question regarding how to post this item for a set of company accounts.

so for year end 2013 we have company A, B, C, D, E. However in 2014 companies B C D E have ceased and all merged into A. For retained earnings brought forward would i take the totals from A + B + C + D + E, or would I just take A?

Thanks

Merged how?
Has A bought b,c,d &e or have b - e ceased trading and their operations taken over by a and b - e still exist.

db141414

B C D E are now dormant, so the latter

zygurat789

db141414 wrote: »

B C D E are now dormant, so the latter

BCD & E all still exist and, although dormant, still have their own balance sheets. A may have purchased assets off them but, in a's books, these would be treated in the same way as a purchase from a remote party.
So A carries on with its own retained earnings and the other companies retain theirs.