[Elizabeth]

Dear Teacher Mike 🙂 It is Elizabeth again.

I have a problem with the unrealised profit question. And it is exactly same as the Oscar’s question 2. In order to prevent to open a new post so I posted here to ask teacher.

I think Oscar meant when we have Unrealised Profit – Downstream transaction,

Why we need to credit the investment in associate as the follow double entry for downstream transaction?

DR Cost of Sales
CR Investment in associate

* it was extracted from BPP pg324, section 4.6.

Wishing teacher Mike has a nice day.

Regards
Elizabeth

[Elizabeth]

Thank you very much to Teacher Mike.

[Author]

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