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Sell the asset for 100,000:
Then Assets reduce by 80,000
And Receivables/Cash up by 100,000
Therefore, retained profits up by 20,000
And SoFP balances!!So from a from a consolidation perspective:
Retained earnings down by 20,000, and
Cash/Receivables down by 20,000!!!No, Retained earnings down by 20,000, TNCA down by 20,000 ( this is the example on selling assets within the group isn’t it? )
yes, this is the example on selling assets. i just don’t understand why TNCA down by 20,000. the 100,000 would become a receivable when asset sold, so therefore the 20,000 reduction should be in receivables (and retained earnings)?!?!
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