Fac 2602 Assignment 2 Answers For Semister 2, 2024 (Unisa)

AN SW ER SA N SW ER S20 22AN SW ER SA SSIG N M EN T 2A SSIG N M EN T 2S EM ES T ER 2S EM ES T ER 2F A C2602PART A Draft the following pro-forma consolidation journal entries of the IWP Ltd Group for the year ended 31 August 2022, after taking the above-mentioned information into account: (a) Elimination of the unrealised profit included in the opening and closing inventory DR CR Retained Earnings - BigCat Ltd 66 666,67 Cost of sales - BigCat Ltd 66 666,67 Elimination of the unrealised profit included in the opening inventory (400 000 x 20/120) Cost of Sales - BigCat Ltd 58 333,33 Inventory - IWP Ltd 58 333,33 Elimination of the unrealised profit included in the Closing inventory (350 000 x 20/120) (b) Elimination of the profit on sale of the machine and the related depreciation from the date of transaction. DR CR Retained Earnings - IWP Ltd 60 000,00 Machinery - BigCat Ltd 60 000,00 Elimination of profit on sale of machinery Accumulated Depreciation - BigCat Ltd (60 000 x 25% x 18/12) 22 500,00 Depreciation - IWP Ltd (60 000 x 25%) 15 000,00 Retained