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 pro forma journal entry/ies would be in the books of W Limited Group as of 30 June 2022, assuming that W Limited did not recognise the write down to net realisable value in its individual records
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 pro forma journal entry/ies would be in the books of W Limited Group as of 30 June 2022, assuming that W Limited did not recognise the write down to net realisable value in its individual records
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 23E
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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 pro forma
Group as of 30 June 2022, assuming that W Limited did not recognise the write down to net realisable value in its individual records
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