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38.ABC recognize provision of $1500 in 20X0.
The provision is settled in $1200 during the year.
In 20X1 the provision of ABC to another
customer is $ 800.
What accounting entry is required to record this
provision?
Dr
Cr
a)
b)
C)
d)I have no idea -_-
Can u please replay sir.. I think I didn’t post my message by clicking on that ‘Reply’ button. Maybe u didn’t get my message ^ _ ^
May be the entire formula for finding out profit attributable to NCI is wrong and nobody noticed it.
Instead of : NCI% × profit after tax of subsidiary – PURP × NCI%
It should be : NCI% × ( Profit after tax of subsidiary- intra group trading) – PURP × NCI%.
OMGGGG.. I’M SOOO SMART. ^ _ ^
.. I’ve watched those lectures from YouTube, almost all of them…. May be I didn’t understand even from YouTube . -_-
..if we didn’t deduct intra group trading when finding out profit attributable to NCI doesn’t that mean NCI is claiming the part of sales profit that S made by selling to P. BUT SINCE IT ESSENTIALLY JUST MEANS THAT WE’RE PUTTING ITEMS FROM ONE POCKET TO ANOTHER ,WE SHOULD DEDUCT SALES REVENUE FROM S (P WILL DEDUCT FROM PURCHASE IN COGS)
WHY DIDN’T WE DEDUCT SALES REVENUE OF 900 FROM S.
145 P Co acquired 80% of the ordinary shares of S Co several years ago During the year ended 31 March-20X7, S. Co made a profit after tax of S25,000. During the year ended 31 March 20X7 S Co sold goods top co for S900, which included a mark-up of 50%, At the reporting date only onethird of those goods had been sold by P Co.
What was the non-controlling interest share of the consolidated
profit after tax for the year ended 31 March 20X7?I know the answer is 25000×20% – (20% of 200)
= 4960But I don’t get it why didn’t we deduct 900 from 25000(intra-group trading ) which it sold to parent.