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Consolidated financial statements adv accounts

Accountancy

Can u explain,what basis they separate the unrealised profit.?

Sathiya Bama

CA Final

★ 24K+

20-Apr-21 18:20

425

Answers (3)

Can anyone help me ? For this

Thread Starter

Sathiya Bama

CA Final

★ 24K+

21-Apr-21 22:12

Thread Starter

Sathiya Bama

Can anyone help me ? For this

It is the unrealised profit that has to be eliminated while consolidation. Say Cost - 100 Profit - 20 -----? Sales - 120 ----- 24 Hence, To find the Profit included in inventory lying with S ltd has to be eliminated as follows 24 x 20/120 = 4 Lakhs

ruchi lahoti

CA Inter

★ 27K+

22-Apr-21 13:16

Thanks mam.

Thread Starter

Sathiya Bama

CA Final

★ 24K+

22-Apr-21 14:44