Question
Question 1 a) Where does unrealized profit on intra-group trading appear in the consolidated statement of profit or loss? b) P owns 80% of the
Question 1 a) Where does unrealized profit on intra-group trading appear in the consolidated statement of profit or loss? b) P owns 80% of the shares in S. Ps statement of profit or loss shows investment income of GHC60,000. Ss statement of profit or loss shows investment income of GHC20,000. During the year S paid a dividend of GHC50,000. What is investment income in the consolidated statement of profit or loss? c) P owns 90% of the shares in S. Ps statement of profit or loss shows revenue of GHS120,000 and cost of sales of GHC90,000. Ss statement of profit or loss shows revenue of GHC45,000 and cost of sales of GHC30,000. During the year S sold P goods for GHC12,000 making a profit of GHC4,000. All these goods are in Ps inventory at the year end. What are revenue and cost of sales in the consolidated statement of profit or loss?
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