Hoddle Limited P&L

anthony_12c

Anybody able to help with hoddle ltd's consolidated P&L account i know the total is £47138 but not totally sure what to do with adjustments.

sdv

when you are required to produce a consolidated profit and loss account; you are requied to make adjustments for intercompany transfers and unrealised profits on unsold stock.

you will cover this in more detail next year

The adjustment for Hoddle ltd is reduce the sales by £20,167; reduce purchases by £18,271 and reduce the closing stock by £1,896 (unrealised profit)

therefore

Debit sales £20,167
Credit Pchse £18,271
Credit Stock £ 1,896

£47, 138 is the consolidated Net profit for the Group

anthony_12c

thanks for the help, the unadjusted figures for hoddle ltd...do you take them from the VAT return figures or from the sales & purchases day book summary?

sdv

No you do not adjust Hoddle's Ltd VAT returns nor do you make any posting to the day books. Every company accounts for vat separately and in thir own company's names.

Under the IAS accounting standards a parent company has to produce and present group accounts and thefore it has to present consolidated (treat subsiduary company as it's own assets/liabilities) profit and loss account as well as balance sheet.

anthony_12c

Hi i am still gettin totally lost, and i have entered the figures for kelly into their row then not sure bout hoddles figures as i am still not gettin a net profit of 47138.

I have total expenses of 186501?

Consolidated totals as:
Sales 396207
Openin stock 42979
Purchases 205274
Closing stock 199098

Where am i going wrong?

sdv

let me have your e-mail and I will e-mail you the answers

it will make more sense

sdv

sales £396 208
o/stock 42979
purchases 168732 (136095+50908-18271)
C/STOCK 49155 (31207+16052-1896)

gross profit 233652
expenses 186514 (don't forget to add alpha stationery invoice of 12.63)

net profit 47138

sdv

answers e-mailed