cash in transit

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September 25, 2018 at 7:23 pm #475719

sianga90
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How do you adjust for cash in transit when preparing consolidated SFP?

September 25, 2018 at 8:11 pm #475730

P2-D2
Keymaster

Hi,

You treat it like the normal cash receipt from a credit customer. So you would DR Bank CR Receivable.

Once you’ve done this the receivable and payable balance should be equal and so you can then eliminate them on consolidation.

Thanks
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