[sara3008]

I now realise the stupid reading error I’ve made here! My brain interpreted “for the year ended” to “as at year end” so I was under the misapprehension that you needed to work out pre-acq for S. Thanks very much for clearing things up for me – I definitely won’t be making this mistake again!!

[sara3008]

Hiya, your explanation is a bit confusing to me, so no wonder you’re confused as well!

Here’s the way I remember it:
For GIT/CIT, you only adjust the books of the ‘receiving’ company i.e. company who would receive the cash payment or goods being sold. There is no need to adjust the books for the company who sold the goods/made the payment as they have already recorded the transaction which is why the in-transit difference exists in the first place!

Hope this makes more sense to you 🙂

[Author]

Posts