intra-group sales

Home Forums ACCA Forum F7 Financial Reporting Forums intra-group sales

This topic contains 2 replies, has 2 voices, and was last updated by Avatar of QIN QIN 2 years, 3 months ago. This post has been viewed 29 times

Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts

  • Avatar of QIN
    QIN
    Participant
    • Topics: 61
    • Replies: 176

    On Q1 of June 2010 (Picant), why AR of CSFP should less 3.4m, Payable liabilities should only less 3.4-1.8=1.6. I know 1.8 should be regarded as inventory to be added back to S, so why not consolidated AR should be only 1.6?


    Avatar of Najiya
    Najiya
    Participant
    • Topics: 1
    • Replies: 96

    Remember Double-Entry!!!
    1.8 adjusted in Inventory & Payables. then why again in Receivables?

    The entries are as follows.

    Goods in transit
    Dr. Inventories 1.8
    Cr. Payables (S) 1.8

    Cancel current accounts
    Dr. Payables 3.4
    Cr. Receivables 3.4


    Avatar of QIN
    QIN
    Participant
    • Topics: 61
    • Replies: 176

    thanks! understand now! GIT and intra-group sales treated separately. I mix them.

Viewing 3 posts - 1 through 3 (of 3 total)

You must be logged in to reply to this topic.