Union Plc is the sole subsidiary of Water Plc. The cost of sales figures for 2018 for Water Plc and Union Plc were GH¢55 million and GH¢50 million respectively. During 2018, Water Plc sold goods which had cost GH¢10 million to Union Plc for GH¢15 million. Union Plc has not yet sold any of these goods. What is the consolidated cost of sales figure for 2018?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Union Plc is the sole subsidiary of Water Plc. The cost of sales figures for 2018 for Water Plc
and Union Plc were GH¢55 million and GH¢50 million respectively. During 2018, Water Plc sold
goods which had cost GH¢10 million to Union Plc for GH¢15 million. Union Plc has not yet sold any
of these goods. What is the consolidated cost of sales figure for 2018?

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Consolidation is the process of combining books of accounts of parent company and subsidiary companies. Then, consolidated financial statements are being prepared.

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