tories in the records of W Limited on 30 June 2022 amount to R157 500. • Net realisable value of inventory on hand in the books of W limited amounts to R107 500 on 30 June 2022. • Ignore tax implications Show how the journal entry would be recorded in the books of W Limited on 30 June 2022 in acco
tories in the records of W Limited on 30 June 2022 amount to R157 500. • Net realisable value of inventory on hand in the books of W limited amounts to R107 500 on 30 June 2022. • Ignore tax implications Show how the journal entry would be recorded in the books of W Limited on 30 June 2022 in acco
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
B Limited sells inventory to its parent, W Limited at cost price plus 125% mark-up.
• Closing inventories in the records of W Limited on 30 June 2022 amount to R157 500.
• Net realisable value of inventory on hand in the books of W limited amounts to
R107 500 on 30 June 2022.
• Ignore tax implications
Show how the
June 2022 in accordance with IAS 2. And also show pro forma consolidation journal
for the group.
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