The Co' A is holding 4 branches of different operations, i.e B,C,D & E. B is selling goods to D & E as with Cost + Profit
My Querry is
Is the Transaction valid with Cost + Profit
If it is valid then what is the Journal Entry for Internal Payment transfer for Books of accounts.
Thanks
It is a valid transaction. The entry would be of a normal sale and purchase transaction. At the time of consolidation inter group sale and purchase would get knocked off thereby reducing the profit included in the transaction.
Hope this clarifies.
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