Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

March 2026 ACCA Exams Results

Comments & Instant poll

Save 20% on ACCA & CIMA Books

Interactive BPP books for June 2026 exams, recommended by OpenTuition.
Get discount code >>

Cash Flows- Acq of a Sub

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Cash Flows- Acq of a Sub

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • March 14, 2018 at 8:41 pm #442647
    Avatareirinita
    Member
    • Topics: 2
    • Replies: 0
    • ☆

    Dear Tutor,

    Thanks for the amazing classes!
    I was wondering, when drawing the T accounts for the PPE…
    Opening balance is a debit (ok since PPE is an Asset account)
    Acq of a Sub is a debit (ok again because I increase my asset side)

    Then, the balancing figure is an outflow of cash… so I debit? Why so?
    My rationale says to actually credit the Bank, since it is an outflow!
    Help me build the correct rationale behind that..!

    I look forward to your reply.
    Regards,
    R.

    March 18, 2018 at 3:50 pm #442957
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    Thanks for the kind comment, it’s much appreciated.

    It is an outflow of cash as when you CR Bank you are then DR PPE. The DR is the balancing figure and so this must represent a cash outflow as the CR entry is the cash outflow.

    Hope that helps.

    Thanks

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.