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Hi Chris
Firstly, thank you so much. You are one of the best lecturers I have seen!
A question on chapter 23 – Example 7 – Unrealised Profit as seen at this link:
https://opentuition.com/acca/fr/group-sfp-example-pups-acca-financial-reporting-fr/Should we not have removed $120,000 from both the receivables and payables as it was an inter-company sale?
Apologies if this question has been asked elsewhere – I did search on the forums but couldn’t find it discussed.
Kind regards,
AndrewHi Andrew,
Thanks for the kind comment, it’s made my Friday night!
We’d only remove the $120,000 from the receivables and payables if the balances were still outstanding. In this instance they aren’t as we’re not told that they are, we have to assume therefore that they’ve been paid.
Best of luck with the rest of the studies.
Thanks
Chris
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