Debit: cash on hand, bank deposit, etc.
Loans: other payables; Interest:
Debit: financial expenses,
Credit: other payables.
The subsidiary has independent subject qualification and enjoys independent legal person status. The property of the subsidiary is completely independent. As an independent legal subject, subsidiaries operate independently and conduct independent accounting, and all consequences, including property and liabilities, are entirely borne by themselves.
But it has something to do with the parent company, and the level of interest should be fair.
Can a subsidiary lend money to the parent company without interest?
If the subsidiary lends money to the parent company, if both parties really agree that it is interest-free, it may not charge interest.
If it is not an interest-free loan, the accounting treatment of interest income obtained by subsidiaries is,
Borrow: bank deposits and other subjects,
Loan: other business income,
Taxes payable-VAT payable (output tax).
Does the subsidiary use false materials to prove that it is illegal for the bank to lend money to the parent company?
It is an illegal act and constitutes a crime of defrauding loans.
The crime of defrauding loans refers to the act of obtaining loans from banks or other financial institutions by deception, which causes heavy losses to banks or other financial institutions or has other serious circumstances.
This kind of loan seems to be just cleverness, but in fact it involves a criminal crime-the crime of defrauding loans. Not all fictional uses can be considered as constituting this crime. If the fabricated loan purpose does not change the nature of the risk and does not affect the overall benefit of the loan use, it should not be considered as a crime of defrauding loans. Only when the fictitious loan purpose leads to an increase in risk or seriously affects the overall benefit of the loan can it be considered as constituting this crime.
This is the end of introducing subsidiary loans to the parent company and subsidiary loans to the parent company. I wonder if you have found the information you need?