How to write the offset entry of parent-subsidiary merger

1. Offset treatment of owner's equity of subsidiary and long-term equity investment of parent company:

Borrow: share capital,

Debit: purchase date of capital reserve+assessed appreciation+current year's increase,

Debit: purchase date of surplus reserve+current year's accrual.

Debit: undistributed profit purchase date+adjusted net profit-surplus reserve withdrawn this year-dividend, etc.

Borrow: goodwill,

Loan: the amount of long-term equity investment adjusted according to the equity method.

Loan: minority shareholders' rights and interests.

2. Offset investment income:

Borrow: investment income,

Borrow: profit and loss of minority shareholders,

Borrow: undistributed profit-the purchase date at the beginning of the year,

Loan: withdrawal of surplus reserve,

Distribution to owners (or shareholders),

Undistributed profit-year-end.

3. Internal transaction inventory:

Debit: operating income,

Loan: operating cost difference,

Unrealized internal sales profit of inventory,

Debit: inventory-inventory depreciation reserve,

Loan: asset impairment loss,

Debit: deferred income tax assets,

Credit: income tax expense.