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Need help on this Question, Please ASAP – F7 Consolidated

Forums › ACCA Forums › ACCA FR Financial Reporting Forums › Need help on this Question, Please ASAP – F7 Consolidated

  • This topic has 4 replies, 3 voices, and was last updated 11 years ago by 3mr.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • March 8, 2014 at 12:27 pm #161781
    Mark
    Member
    • Topics: 11
    • Replies: 4
    • ☆

    Hello,

    Can someone please, help me and make me understand this question,
    https://imgur.com/pTZKdJL
    [IMG]https://i.imgur.com/pTZKdJL.jpg[/IMG]

    thank you very much

    I understand that

    We add 21,300 + 8600 and then reduce this by 2m since its a intercompany sale
    therefore if you reduce sales by 2m you do the same with purchases

    But I don’t understand the deprication part.

    I get

    Sale = 2m
    Cost = 1.4m
    GP = 600k

    What do I do next, thank you

    March 8, 2014 at 12:34 pm #161783
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    Add the $600 pup to consolidated cost of sales

    March 8, 2014 at 12:37 pm #161785
    Mark
    Member
    • Topics: 11
    • Replies: 4
    • ☆

    What about the 10% Depreciation? part, i don’t understand that as well , Please explain thank you very much

    March 8, 2014 at 7:12 pm #161810
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23315
    • ☆☆☆☆☆

    Assume that I do not have the question in front of me (I don’t have the question in front of me!)

    Now, give me enough detail from the question so that I have a sporting chance of resolving the issue for you

    March 9, 2014 at 9:21 am #161825
    3mr
    Participant
    • Topics: 24
    • Replies: 39
    • ☆☆

    Is it right to apply these adjusting entries to the group:

    Dr. Sales 600
    Cr. Plant 600

    Dr. Accumiliated depreciation 200
    Cr. Depreciation expense 200

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
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