Inter company sale

steveJsteveJ Experienced MentorPosts: 694Registered
Hello everyone,

wondering if you could help (again :( )

I am trying to consolidate the accounts of two seperate branches.

Branch A sold to Branch B at cost - £20167.

I am to eliminate this in the consolidated results both for the sale by branch A and the purchase by Branch B.

Do i eliminate it from Branch A sales and Branch B purchases ?
(i have tried this but keep ending up with the same net profit figure as the unadjusted totals!!)

Comments

  • AK002AK002 Font Of All Knowledge Posts: 2,492Registered
    Yes to eliminating the sale in A and the purchase in B.

    NP will stay the same as you are taking out a sale and also taking out a purchase so net effect = £0.
  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    Where it gets more complex is when you have some of the transfer in closing stock.

    And you have to reduce cl stock by the profit element and the other entry decreases profit for the year.
  • steveJsteveJ Experienced Mentor Posts: 694Registered
    Thats great!

    Where would i be without this forum!

    ;)
  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    Why are you studying, aren't the exams over for now?
  • steveJsteveJ Experienced Mentor Posts: 694Registered
    Im studying by Distance learning and wanted to try to finish the unit that im on before christmas!!

    It was a skills test im working up to so theres no fixed exam date.

    What level are you studying at ?
  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    steveJ wrote: »
    Im studying by Distance learning and wanted to try to finish the unit that im on before christmas!!

    It was a skills test im working up to so theres no fixed exam date.

    What level are you studying at ?

    Ah right, AAT dates seem more flexible now than a few years back.

    I'm now doing ACCA, endless studying....
  • steveJsteveJ Experienced Mentor Posts: 694Registered
    As i have a bit of a journey to and from work, studying by distance learning really helps and the skills tests make studying for certain units easier and less pressured.

    What position do you currently work in ?
    Have you got long to go in ACCA ?
  • PGMPGM Font Of All Knowledge Posts: 1,954Registered
    steveJ wrote: »
    As i have a bit of a journey to and from work, studying by distance learning really helps and the skills tests make studying for certain units easier and less pressured.

    What position do you currently work in ?
    Have you got long to go in ACCA ?

    Mgt accounts and hopefully finished ACCA now (if I pass the last two exams)

    I did distance learning with ACCA until the final modules, where I wanted all the help I could get.

    Good luck with your studies!
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