Purchase of shares

Accounting
1

Hello all,

I’ll try and keep this nice and simple. If company A purchases 100% of the shares in company B, what category should be used to generate the relevant invoice? I can’t find anything specific and I’m not sure “General Purchase” is suitable.

Thanks,

Ivan

2

That is not purchase it will be 100% subsidiary investment under current assets. You can create new account name is Investment shares

3

I would say that is not a current asset, as there seems to be no intention to sell in the next 12 months. It should be kept under as a fixed asset investment with disclosures in the accounts.

Kind regards,
Chris