On Q1 of June 2010 (Picant), why AR of CSFP should less 3.4m, Payable liabilities should only less 3.4-1.8=1.6. I know 1.8 should be regarded as inventory to be added back to S, so why not consolidated AR should be only 1.6?
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FRintra-group sales
Remember Double-Entry!!!
1.8 adjusted in Inventory & Payables. then why again in Receivables?
The entries are as follows.
Goods in transit
Dr. Inventories 1.8
Cr. Payables (S) 1.8
Cancel current accounts
Dr. Payables 3.4
Cr. Receivables 3.4
1.8 adjusted in Inventory & Payables. then why again in Receivables?
The entries are as follows.
Goods in transit
Dr. Inventories 1.8
Cr. Payables (S) 1.8
Cancel current accounts
Dr. Payables 3.4
Cr. Receivables 3.4
thanks! understand now! GIT and intra-group sales treated separately. I mix them.
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