I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

What are the consolidated retained earnings of Vaynor Co on 30 September 20X7? 

A $160,000 

B $180,000 

C 200,000 

D $220,000 

(2 marks) 

94 

Spring Co has held 75% of the equity share capital of Summer Co for many years. Cost of sales 

for each entity for the year ended 31 December 20X8 was as follows. 

 

$      

Spring Co 

200,000 

Summer Co 

160,000 

During the year Spring Co sold goods costing $10,000 to Summer Co for $16,000. At the year 

end, all these goods remained in inventory. 

What figure should be shown as cost of sales in the consolidated statement of profit or loss of 

the Spring Group for the year ended 31 December 20X8? 

A $344,000 

B $350,000 

C $360,000 

D $370,000 

(2 marks) 

The following information relates to questions 95 and 96. 

Patience Co has a subsidiary, Bunthorne Co. During 20X1 Bunthorne Co sold goods to Patience Co for 

$40,000 which was cost plus 25%. At 31 December 20X1 $20,000 of these goods remained unsold.  

95 

What will revenue will be reduced by in the consolidated statement of profit or loss for the year