How do i get cost of sales here please?

topcat

I make the unrealised profit £30,000 two thirds of this is £20,000

£10,000 - £20

=9980

how do i get £9920

Lucy_M

Hi,
You've forgotten to deduct the sale in the first place. Inter-company sales are deducted from both revenue and cost of sales, but the PUP (provision for unrealised profit) is added back to COS. So 10,000 - 100 + 20 = 9920 :001_smile:

topcat

Lucy_M wrote: »

Hi,
You've forgotten to deduct the sale in the first place. Inter-company sales are deducted from both revenue and cost of sales, but the PUP (provision for unrealised profit) is added back to COS. So 10,000 - 100 + 20 = 9920 :001_smile:

Hi lucy thanks a lot :thumbup1::thumbup1:

has been driving me mad for a good hour , i can sleep easy tonight