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Hi
Regarding of your lecture in the topic of Associate
you clearly mentation that if the seller is Associate then the accounting
will be
DR Group RE
CR Group Inventory
however question number 260 Kit
would you mind to help me in this question for me the associate here as it is “McLintock” sold the goods therefore is the seller
my answer goes to option C which is CR the Group Inventory by 48000
but the Kit has different answer which is option D
I really confuse
would you mind to help me ?Hi, I have the same query. I have the BPP book and it states that the journal DR Retained Earnings CR Investment in associates is used independently of who the seller is. Can someone please confirm?
To the original poster, if you want the tutor to answer directly please use the ask the forum as this forum is designed primarily for students to help one another. I don’t have book referred to by the question but easiest way of handling problem is as suggested by poster Sheyla – debit retained earnings and credit associate. Hope this helps.
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