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

QUESTION 

Intra-group trading I

 

Pumpkin has held 90% of the equity share capital of Squash for many years. Cost of sales for each entity 

for the year ended 31 December 20X3 was as follows. 

 

$ 

Pumpkin 100,000 

Squash 80,000 

During the year, Squash sold goods costing $5,000 to Pumpkin for $8,000. At the year end, all these 

goods remained in inventory.  

(a) 

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

Pumpkin group for the year ended 31 December 20X3?  

 

$      

A 172,000 

B 175,000 

C 180,000 

D 183,000 

(b) 

If Squash's profit for the year was $16,000, what is the profit attributable to the NCI?  

BPP Tutor Toolkit Copy

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CHAPTER 25  

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  THE CONSOLIDATED STATEMENT OF PROFIT OR LOSS