Parent sold to Subsidiary at margin of 10% (all sales are done at margin of 10%)																						
																							
	90 CU	5 CU																					
	external sales	internal sales																					
																							
Sales recorded																							
	99	5.5	104.5																				
	external sales	internal sales																					
																							
	Parent's records (initialentry):																						
																							
	Db	AR	99	5.5	104.5																		
	Cr	Sales			104.5																		
																							
	Db	COGS	90	5	95																		
	Cr	Stock			95																		
																							
	Parent's FS				Subsudiary's FS			Group's FS															
																							
	AR		104.5		AP	5.5		AR	104.5														
	Stock		0		Stock	5.5		Stock	5.5														
	Sales	104.5						AP	5.5														
	COS	95						Sales	104.5														
			9.5					COS	95														
																							
	Parent's records (correcting entry):																						
																							
	Db	Sales	5.5																				
	Cr	AR	5.5																				
																							
	Db	Stock	5																				
	Cr	COGS	5																				
																							
	Parent's FS				Subsudiary's FS			Group's FS					Mov-t in Group accounts:										
																							
	AR		99		AP	0		AR	99				AR	-5.5	Cr		Db	AP	5.5				
	Stock		5		Stock	0		Stock	5				Stock	-0.5	Cr		Cr	AR	5.5				
	Sales	99						AP	0				AP	-5.5	Db								
	COS	90						Sales	99				Sales	-5.5	Db		Db	Sales	5.5	=>	Db	PUP	0.5
			9					COS	90				COS	-5	Cr		Cr	COS	5				
																	Cr	Stock	0.5		Cr	Stock	0.5
	PUP		0.5