- This topic has 3 replies, 2 voices, and was last updated 11 years ago by .
Viewing 4 posts - 1 through 4 (of 4 total)
Viewing 4 posts - 1 through 4 (of 4 total)
- You must be logged in to reply to this topic.
Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>
Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › assets and liabilities
A company had the following transactions:
1 Goods in inventory that had cost $1,000 were sold for $1,500 cash.
2 A credit customer whose $500 debt had been written off paid the amount in full.
3 The company paid credit suppliers $1,000
What will be the combined effect of these transactions on the company’s total net assets (current assets
less current liabilities)?
A Increase of $1,000
B Net assets remains unchanged
C Increase of $2,000
D Increase of $3,000
sir, how is option A correct??
from 1, our assets increased by 500 and from 2, 500. In third , our liability is decreased by 1000.. so cash is reduced in paying liability . so, i got option 2 ans
For 1 – yes, our assets increase by 500
For 2 – if we are receiving cash 500 from a customer who does not owe us (because they had been written off) then again assets increase by 500
For 3 cash falls and liability falls, so no effect on net current assets.
So answer A is correct.
thank yuh john 🙂
You are welcome 🙂
