Chapter 3 - Group accounts - intragroup trading Flashcards
What is the journal for cash in transit?
DR Cash (increase) CR Receivables (decrease)
What is the journal for goods in transit?
DR Inventories (increase) CR Payables (increase)
What is the journal for eliminating intragroup receivables and payables?
DR Intragroup payable (decrease)
CR Intragroup receivable (decrease)
What is the journal for a sale of goods (in the books of the company that made the sale)?
DR Retained Earnings (decrease)
CR Group Inventories (decrease)
What is the journal for a sale of PPE (in the books of the company that made the sale)?
DR Retained Earnings (decrease)
CR Group PPE (decrease)
What are the 2 journals for an intercompany loan?
DR Loan Payable (decrease)
CR Loan Receivable (decrease)
DR Finance Income (?)
CR Finance Cost (?)
What is the method for RE of subsidiary in the group accounts:
parent’s share of:
post acq RE
less: Goodwill impairment
less: PUP (when sub sells to parent)
less: FV adj depn (FV adj x (time so far/total life))
less/plus: FV adj of contingent liability
less: FV adj of inventories
How do you calculate consolidated PPE?
Parent PPE + Subsidiary PPE + (FV adj x remaining life/total life)
How do you calculate consolidated non-current liability?
Parent NCL + Subsidiary NCL
How do you calculate consolidated current liability?
Parent CL + Subsidiary CL + FV contingent liability @ qn
What is profit mark-up a percentage on?
Cost
What is profit margin a percentage on?
Sales
