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intra-group sales

This topic has 2 replies, 2 voices, and was last updated 10 years ago by QIN.

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April 17, 2012 at 7:39 am #52239
QIN
- Topics: 63
- Replies: 176
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?
April 17, 2012 at 8:49 am #96355
Najiya
- Topics: 1
- Replies: 94
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
April 17, 2012 at 10:38 am #96356
QIN
- Topics: 63
- Replies: 176
thanks! understand now! GIT and intra-group sales treated separately. I mix them.
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