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hi everyone welcome to the session in this session ill be discussing about how to record elimination of inter-company transaction and also elimination of unrealized profit okay so lets move on to this example i have taken an example lets go through this example then we will uh move on to the solution okay so he acquired 80 percent of his company so therefore s company company now you are given that p sold 9 worth of votes for 150 dollars as follows so what is the cost of the goods purchase 90 so p sold ninety dollar worth of goods four hundred and fifty s fives okay so you are given the summary as you can see says external customers hundred dollars and to subsidy company 50 dollars so therefore the total sales 150 dollars so which is uh as for this statement okay and also the cost of goods sold 60 for the external customer sales 30 for the subsidiary competency and thereby the total total cost of goods sold is 90 which is exactly the 90 dollars purchased by parent company okay so th
