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so in this and how do you in so this is what Im going to focus on this video so the intercompany so intercompany company so these are the areas that will be tested in your exam so first and foremost let me discuss about intercompany sales so in order to discuss this let me take an illustration so lets as you be company V company has sold $100 worth of goods to s company okay so lets as you there is no profit okay so without profit lets try to understand how to account for this intercompany transaction so we have sold $100 worth of goods to s company so as far as P is concerned okay so P will record this particular transaction in their books of account as since okay so they will treat the P company will treat this particular transaction as a sale so as a result of that the pre company will record this particular transaction as account receivable ribbit hundred dollars and sales account credit under dollars okay so if you take the standalone separate financial statement for P company
