Could someone tell me if the below is correct as getting totally confused
Regarding PUP are the journal entries below correct for Group consolidated accounts?
If the Parent (P) sells goods to the subsidiary (S) and goods still remain in stock
Dr Retained Earnings (sub column with retained earning workings)
Cr Group Inventory
Am I right in saying that if does not actual matter in terms of journal entries whom holds the stock P or S as long as its held with the group? Will the unrealised profit (pup) always be adjusted within the sub's column of retained earning workings regardless of whom sells and holds the stock at year end?