Transfer of Plant – BPP Ques 288

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August 25, 2018 at 8:03 am #469328
steven311
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Dear Sir

Regarding BPP Revision Kit Ques 288 – Prodigal Co – Working 3

The figure in Working 3 shows that Dr Cost of Sales 850.

However, in the SPLOCI for the year ended 31 Mar 20X1, only 800 is included in cost of sales.

May I know whether the figure debited to cost of sales is 800 or 850?

Kindly explain.
August 27, 2018 at 8:47 pm #469713
P2-D2
Keymaster
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Hi,

I think the answer makes it confusing by including the journal entry. The adjustment to C’o’S should be for the 800. If you make this adjustment in S’s column then the NCI will automatically get their share of the adjustment in calculating the NCI.

Thanks
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