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Hi Mike,
With regard to Intra-Group pup mini questions. Can you confirm the answer for no. 3
H sold $80000 to A at a gross profit of 30%
A had sold none of these goods by the end of the year.
The answer says it shows in A books, I thought it would be H because H recognised the profit?Have you read the course notes? Have you watched the videos?
Look at page 64 in the course notes, third bullet point from the end.
Then come back to me if you need to 🙂
Hi Mike, I have read and watched everything up to chapter 9 and was practicing the mini questions then.
Sorry I hadn’t got to those notes.Thanks again for your time.
You’re welcome – the resultant figures come about because in the notes it says “the easiest way …”
An exam answer will sometimes take the group’s percentage from the consolidated retained earnings as a separate exercise.
“My way” automatically accounts for the elimination of the group’s share of that pup but results in figures slightly different than some printed answers
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