FAC2602
ASSIGNMENT 02 2021
Semester 1 & 2
NB: ALL CALCULATIONS ARE
SHOWN STEP BY STEP FOR
BETTER UNDERSTANDING!!
, PART A
a) ELIMINATION OF THE UNREALISED PROFIT INCLUDED IN THE OPENING
AND CLOSING INVENTORY
DEBIT CREDIT
Cost of sales (Burgers-Eat) 7 500
Inventory (Travelwell) 7 500
Elimination of unrealised intragroup profit included
in the closing inventory of Travelwell Ltd
(25/125 x 37 500)
Retained earnings (Burgers-Eat) 22 000
Cost of sales 22 000
Elimination of unrealised intragroup profit included
in the opening inventory of Travelwell Ltd
(25/125 x 110 000)
b) RECORDING OF THE NON-CONTROLLING INTERESTS’ SHARE IN TRAVELWELL LTD’S
PROFIT SINCE ACQUISITION TO THE BEGINNING OF THE CURRENT YEAR
DEBIT CREDIT
Retained earnings 26 752
Non-controlling interests 26 752
Recording of NCI in Travelwell Ltd
for the year ended 31 Aug 2019
20%x(341260 – 185500 – 110000 x 25/125)
ASSIGNMENT 02 2021
Semester 1 & 2
NB: ALL CALCULATIONS ARE
SHOWN STEP BY STEP FOR
BETTER UNDERSTANDING!!
, PART A
a) ELIMINATION OF THE UNREALISED PROFIT INCLUDED IN THE OPENING
AND CLOSING INVENTORY
DEBIT CREDIT
Cost of sales (Burgers-Eat) 7 500
Inventory (Travelwell) 7 500
Elimination of unrealised intragroup profit included
in the closing inventory of Travelwell Ltd
(25/125 x 37 500)
Retained earnings (Burgers-Eat) 22 000
Cost of sales 22 000
Elimination of unrealised intragroup profit included
in the opening inventory of Travelwell Ltd
(25/125 x 110 000)
b) RECORDING OF THE NON-CONTROLLING INTERESTS’ SHARE IN TRAVELWELL LTD’S
PROFIT SINCE ACQUISITION TO THE BEGINNING OF THE CURRENT YEAR
DEBIT CREDIT
Retained earnings 26 752
Non-controlling interests 26 752
Recording of NCI in Travelwell Ltd
for the year ended 31 Aug 2019
20%x(341260 – 185500 – 110000 x 25/125)
