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During 2019, East Bhd sold inventories to North Bhd at invoice value of RM150,000. The goods cost RM125,000 and 10% of these goods were still

  • During 2019, East Bhd sold inventories to North Bhd at invoice value of RM150,000. The goods cost RM125,000 and 10% of these goods were still in the inventory of North Bhd at 31st December 2019.
  • On 1st December 2019, South Bhd sold inventories to North Bhd at invoice value of RM20,000. The profit was RM2,000 and 50% of these goods were still in the inventory of North Bhd at 31st December 2019.

Unrealised profit in inventory

From East Bhd to North Bhd 150,000

Unrealised profit in inventory (150000*0.1 ) 15,000

South Bhd to North Bhd 20,000

Unrealised profit in the inventory 20000*0.5 10,000

How to i calculated the unrealized profits?

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