Joint Arrangements Double entry to recognize profit from arrangement

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August 4, 2017 at 8:12 am #400359
Chandan
Member
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The double entry in the lecture video is
Dr Receivable 2000
Cr Group Retained Earnings 2000

But the 2000 amount is after deducting depreciation.

So how can this non cash expense be a part of the receivable? Shouldn’t the receivable be 2600? making the entry as follows:

Dr Receivable 2600
Cr Retained Earnings 2000
Cr Asset 600

Could you please advise
August 6, 2017 at 4:53 pm #400762
P2-D2
Keymaster
- Topics: 4
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Hi,

Yes, I think there is a mistake in the video. I’ll update it once I get the opportunity.

Thanks
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