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Ch15 – Example 3 – pp60

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Ch15 – Example 3 – pp60

Viewing 3 posts - 1 through 3 (of 3 total)
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  • June 26, 2017 at 7:24 am #394084
    wgk
    Participant
    • Topics: 55
    • Replies: 80
    • ☆☆

    Would these transactions be accepted as an answer?

    When initially purchased

    Dr Inventory 10
    Cr Payables 10

    Then cash flow problem

    Dr Payables
    Cr Equity

    June 27, 2017 at 9:11 pm #394225
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7079
    • ☆☆☆☆☆

    Hi,

    We wouldn’t credit the payables as when the transaction is entered into it has been agreed that no cash would be exchanged but shares issued instead.

    Thanks

    August 19, 2017 at 5:04 pm #402498
    glorytsang
    Member
    • Topics: 1
    • Replies: 12
    • ☆

    Hi Chris and tutors,

    I have problem with this example too.

    The requirement is for the FS yr ended 31Dec15, which the goods already sold in Nov14.

    Should we also have

    SOPL
    Dr AR/cash $14M
    Cr Sales

    Dr COGS $10M
    Cr Inventory

    Moreover, will the Equity -shares to be issued $10M forever sitting on the SFP and when will we issue the share? and will there be any share premium?

    Thanks all!

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