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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Sales between the parent and associate
Dear Sir,
I would like what should I do and what are the double entries in the following situations:
1. Parent sell goods to associate at a profit
2. Associate sells goods to parent at a profit
Thanks,
Jean
When parent is selling to associate:
Consolidated reserves dr.
Cost of investment Cr.
When associate is selling to parent:
Consolidated reserve Dr.
Stock Cr.
I disagree with qadir413 – but it’s probably too late now!