Stock Reserve for unrealised profit in respect of inter-company transactions should be created by .........

CS Executive · Corporate and Management Accounting · PYQS · June 2023
Stock Reserve for unrealised profit in respect of inter-company transactions should be created by .........
(A) debiting the Consolidated Profit and Loss Account and crediting Stock Reserve Account
(B) debiting the Stock Reserve Account and credited Consolidated Profit and Loss Account
(C) debiting the Consolidated Profit and Loss Account and crediting Capital Reserve Account
(D) debiting the Goodwill account and credit Consolidated Profit and Loss Account

Answer & Explanation:

Correct Answer: Option (A)

Official answer key: (A).

Topics: Corporate Accounting

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