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September 6, 2020 at 10:51 pm
At the time of sale of inventory of 120,000, both parent and subsidiary would have created receivable and payable at the time of sale. Why didn’t we reversed that? They would have created intra company balances.
Dr Payables (CL) 120,000 Cr Receivables (CA) 120,000
September 21, 2020 at 6:05 pm
yeah i have the same doubt
August 1, 2019 at 11:37 am
I would like to double check regarding the entry in the video
DR. RE of the seller 10
Cr Inventory 10
as the pearnt compny doesnt fully owned the subsidary the entry must as the following
Dr RE of the seller. 8 (10*80%) Dr NCI 2. (10* 20%)
Cr Inventory 10
August 22, 2019 at 10:59 am
to me if you like you can do it this way, however, $10 as being removed from the total post acquisition profit before sharing like 250-10=240.
Also he forgot to state that the $50 remaining unsold is supposed to be deducted from inventory and receivables respectively.
June 11, 2020 at 4:59 pm
You are correct in your understanding in that the PUP is split between the group and NCI. we take account of this by including it in the net asset working where we calculate the post-acquisition profits. The PUP is included within the post-acquisition profit figure so the adjustment you propose is automatically done when we take the post-acquisition profit figure to the NCI working and group retained earnings working.
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