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Consolidation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Consolidation

  • This topic has 5 replies, 2 voices, and was last updated 2 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • September 4, 2022 at 2:28 am #665056
    krrish123456
    Member
    • Topics: 12
    • Replies: 25
    • ☆

    X Co acquired 80% of the equity share capital in Y Co on 31 July 20X6. Extracts from the 2 companies’ statement of profit or loss for the year ended 30 September 20X6 were as follows:
    Revenue (X Co) = 3.4 million Cost of sales (X Co) = 1.5 million
    Revenue (Y Co) = 2.4 million Cost of sales (Y Co) = 1.8 million

    During the year ended 30 September 20X6, Y Co sold goods for $5,000 each month to X Co, at a mark up of 25%. At the end of the year X Co had 50% of these goods left in inventory.
    What is the group profit for the year ended 30 September 20X6?
    Sir in this question for group gross profit unrealised profit would be 1000

    But in inventory 50% of 60000 i.e. 30000 will be present .So will we subtract 1000 or 6000( 1000×12×50%) in sofp inventory?

    September 4, 2022 at 8:24 am #665085
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54717
    • ☆☆☆☆☆

    Only the purp since the date of acquisition.

    September 4, 2022 at 8:32 am #665089
    krrish123456
    Member
    • Topics: 12
    • Replies: 25
    • ☆

    So sir only 1000 …right ?
    Hence purp in p/l = purp in sofp

    September 4, 2022 at 6:19 pm #665130
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54717
    • ☆☆☆☆☆

    Correct 🙂

    September 4, 2022 at 6:40 pm #665144
    krrish123456
    Member
    • Topics: 12
    • Replies: 25
    • ☆

    Thanks sir

    September 4, 2022 at 6:46 pm #665148
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54717
    • ☆☆☆☆☆

    You are welcome.

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Consolidation’ is closed to new replies.

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