# Query with answer on FNST practice paper

Registered Posts: 2 New contributor 🐸
I have been looking at the FNST practice paper number 1 task 1.5 b and having looked at the answer cannot figure out how they got the answers they did for cost of sales total intercompany of £290 and other incoe of £261 if anyone can access that paper and explain how they get these answers it would be of great help, as I have got the exam Tuesday and I can't seem to get this into my head.

Thanks

Nicola

• Registered Posts: 283
I did this last weekend as a practice.
The £290 is the £100 inter company transaction and half of the perceived profit ie £380/2=190
100+190=290
The £261 is made up other income less dividend income check the % and take this away in other words if they have 70% ownership the other income would have 70% of the divi in there.
See if this helps you work it out.
• Registered Posts: 2 New contributor 🐸
Hi,

im also having difficulty getting these round my head.
Practice paper 4 Task 1.5 requires you to calculate a intra adjustment where Company A sold £600000 worth of stock to Company B for £720000. Company B still has a third of the stock left and the adjustment in the cost of sales is -680.
im completely stumped how they have got to that figure, if anyone could point me in the right direction it would be greatly appreciated.
• Registered Posts: 110 Beyond epic contributor 🧙‍♂️
Bacially the parent has made a profit on selling the goods to company b, but this stock is yet to be sold so it has to be valued at cost, so 720 minus the 600 is 120 proft made, a third of this has not been realsied, which is 40, so the 720 minus the 40 gives you the 680.