April 2010 No 8

Discussion in 'CB1' started by Robert, Aug 16, 2019.

  1. Robert

    Robert Very Active Member

    April 2010 No 8

    S is a holding company that has two subsidiaries, T and U. During the year, S made sales of £1.0m, including sales of £0.2m to T. T made sales of £2.0m, including sales of £0.3m to U. U made sales of £4.0m including sales of £0.6m to S.
    Which of the following is the correct figure for group sales according to the consolidated income statement that will be prepared by S?

    how should i calculate for this question ?
     
  2. Lynn Birchall

    Lynn Birchall ActEd Tutor Staff Member

    We need to cancel out any sales within the group. So, for example of S's sales only include 1.0m - 0.2m. Do this for all the companies and add up the result.
     

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