Inter divisional transfers

In books of Plant I Dr. Plant II xxx Cr. Inter-segment Sales (Plant II) xxx In books of Plant II Dr. Inter-segment Purchases (Plant I) xxx Cr. Plant I xxx On consolidation of both plants' books - aforesaid inter-segment sales & purchases get eliminated under "inter-segment" column in Profit & Loss Account. aforesaid Plant I & II balances get eliminated in Balance Sheet. in case of goods sold by plant I to plant II is in inventory of Plant II as on date of consolidation, then a provision must be created to remove profit element from such inventory to the extent of 10% on cost of such inventory. i.e Dr. Provision on Stock Reserves xxx (10% on Cost or 10/110 on value of inventory) Cr. Stock Reserve xxx this reserve shown dedcuted from concerned inventory and net balance only disclosed in B/s.