Gee Limited (GL) is an associate of Jee Pee Limited (JPL). During the year GL sold goods
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Gee Limited (GL) is an associate of Jee Pee Limited (JPL). During the year GL sold goods of selling price ₹1,00,000 to JPL. On March 31, 2011 closing stock of JPL comprised stock amounting to ₹30,000 out of the goods purchased from GL. Financial statements of GL disclose a gross profit margin of 20% for the year 2010–11, whereas JPL has gross profit margin of 25%. Show how unrealized profit is to be eliminated by JPL on March 31, 2011 when JPL holds 40% shares of GL.
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