• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

consolidation account

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › consolidation account

  • This topic has 7 replies, 2 voices, and was last updated 11 years ago by John Moffat.
Viewing 8 posts - 1 through 8 (of 8 total)
  • Author
    Posts
  • April 30, 2014 at 6:31 pm #166929
    Kishan
    Member
    • Topics: 1
    • Replies: 3
    • ☆

    how to do a consolidated profit & loss account?for example june2014 pilot paper

    April 30, 2014 at 8:30 pm #166944
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    Have you watched the free lecture here on the Consolidated Statement of profit or loss? It is explained there.

    April 30, 2014 at 8:33 pm #166945
    Kishan
    Member
    • Topics: 1
    • Replies: 3
    • ☆

    i watch but couldn`t understand, i want to get an model answer please

    April 30, 2014 at 8:52 pm #166950
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    The model answer is on the ACCA website – it is the same file as the specimen paper.

    April 30, 2014 at 8:54 pm #166951
    Kishan
    Member
    • Topics: 1
    • Replies: 3
    • ☆

    i look @ it but i could not understand

    April 30, 2014 at 9:00 pm #166952
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    You said before that you wanted a model answer. I have told you where it is, but now you say that you have looked at it!

    If you say which part is causing a problem then I will try to help you.

    If you have really watched the lecture on this website, then you should not find most of it any problem.

    May 2, 2014 at 5:48 pm #167160
    Kishan
    Member
    • Topics: 1
    • Replies: 3
    • ☆

    for cost of sales how we get the adjustments valve $1500? and how do we get the value of unrealised profit?

    May 3, 2014 at 10:14 am #167200
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    During the year Keswick sold Derwent goods for $1,500.
    So 1,500 will be included in Keswick’s revenue in their accounts, and 1,500 will be included in Derwent’s cost of sales in their accounts.

    For the consolidated Statement of profit or loss, we only want to show sales outside the group and costs outside the group, so we need to subtract 1,500 from the total sales and also from the total cost of sales.
    (this adjustment has no effect on the final profit).

    However, the total profit would still include the 500 (1500 – 1000) profit that Keswick made on the sale to Derwent. This would be fine if all of the goods had then been sold outside the group. But 30% of the goods are still in inventory and therefore have not been sold outside the group. So the unrealised profit is 30% x 500 = 150. This needs removing from the total profit and we do this by increasing the cost of sales by 150.

  • Author
    Posts
Viewing 8 posts - 1 through 8 (of 8 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • DeborahProspect on ACCA SBR Specimen Exam 2 Question 1
  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023
  • darshan.69 on Chapter 9 Pension Schemes TX-UK FA2023
  • Jarzin on The Finance Function in the Digital Age – CIMA E1
  • dkessilfie on FM Chapter 1 Questions – Financial management objectives

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in