FAC3704 Assignment 02 (Elective option – Assessment 3)
Second Semester 2025 Student Name: Student Number: Unique Number:
Declaration
I, _________________________________, hereby declare that this assignment is my own
work, expressed in my own words. All sources used have been properly
acknowledged in accordance with UNISA’s referencing guidelines. I understand
that plagiarism is a punishable offence.
Signature: _____________________ Date: _________________________
📖 Table of Contents
1. Question (a): Pro forma journal entries
2. Question (b): Non-controlling interest (NCI) profit portion
3. Question (c): Share of profit from joint venture
4. Question (d): Consolidated Statement of Profit or Loss and Other
Comprehensive Income
5. Question (e): Consolidated Statement of Changes in Equity (Share Capital &
Retained Earnings only)
6. References
(a) Pro forma journal entries (inventory – Additional Info 5)
Given:
Izabelo Ltd sold goods worth R500 000 to Motshameko Ltd (markup 40% on
selling price).
Closing inventory from these goods still held by Motshameko = R304 000.
Unrealised profit calculation:
Profit % on selling price = 40%.
Unrealised profit = R304 000 × 40% = R121 600.
Consolidation journal entries:
1. Eliminate intragroup sales:
Dr Revenue (Motshameko Ltd) .................. R500 000
Cr Cost of sales (Izabelo Ltd) .................... R500 000
Second Semester 2025 Student Name: Student Number: Unique Number:
Declaration
I, _________________________________, hereby declare that this assignment is my own
work, expressed in my own words. All sources used have been properly
acknowledged in accordance with UNISA’s referencing guidelines. I understand
that plagiarism is a punishable offence.
Signature: _____________________ Date: _________________________
📖 Table of Contents
1. Question (a): Pro forma journal entries
2. Question (b): Non-controlling interest (NCI) profit portion
3. Question (c): Share of profit from joint venture
4. Question (d): Consolidated Statement of Profit or Loss and Other
Comprehensive Income
5. Question (e): Consolidated Statement of Changes in Equity (Share Capital &
Retained Earnings only)
6. References
(a) Pro forma journal entries (inventory – Additional Info 5)
Given:
Izabelo Ltd sold goods worth R500 000 to Motshameko Ltd (markup 40% on
selling price).
Closing inventory from these goods still held by Motshameko = R304 000.
Unrealised profit calculation:
Profit % on selling price = 40%.
Unrealised profit = R304 000 × 40% = R121 600.
Consolidation journal entries:
1. Eliminate intragroup sales:
Dr Revenue (Motshameko Ltd) .................. R500 000
Cr Cost of sales (Izabelo Ltd) .................... R500 000
