Question 1
Tyco
74% 25%
Dunkin Clyde
185000 74% 30000 25%
250000 120000
Intra group sale of inventories
$75,000
Tyco Dunkin
i) Dr Sales - Dunkin 75,000
Cr COS - Tyco 75,000
ii) URP = 75000 X 20 12500
120
Dr COS - Dunkin 12,500
Cr Closing Inventory - Tyco 12,500
Acquisition of non-current asset
Tyco Dunkin
$50,000
i)
Dr Sales - Tyco 50000
Cr COS - Tyco 30000
Cr NCA- Dunkin 20000
Tyco
74% 25%
Dunkin Clyde
185000 74% 30000 25%
250000 120000
Intra group sale of inventories
$75,000
Tyco Dunkin
i) Dr Sales - Dunkin 75,000
Cr COS - Tyco 75,000
ii) URP = 75000 X 20 12500
120
Dr COS - Dunkin 12,500
Cr Closing Inventory - Tyco 12,500
Acquisition of non-current asset
Tyco Dunkin
$50,000
i)
Dr Sales - Tyco 50000
Cr COS - Tyco 30000
Cr NCA- Dunkin 20000