Chpt 4 Grp Statements

Question 1

Intra grp trading

Transactions in group accounts

Answer 1

Always:
Dr Group Revenue ⬇️
Cr group COS ⬇️

If goods still held YE:
Dr Group Cos (PUP) ⬆️
Cr Group inventories (PUP) ⬇️

Question 2

Parent purchases additional equity in Subsidiary

Answer 2

Cr Cash ⬇️
Dr NCI ⬇️
Dr reserves (balancing fig)

Opposite if P sells some S

Question 3

Transfer PPE

Answer 3

Dr COS (PUP) 
Cr PPE (PUP)