(iii) At 30 September 2011, Saracen’s inventory included goods bought from Paladin (at cost to Saracen) of $2·6 million. Paladin had marked up these goods by 30% on cost. Paladin’s agreed current account balance owed by Saracen at 30 September 2011 was $1·3 million.
-> Pup, i hv understood but paldin's current account agreed so why should we deduct 1.3 m from Paldin rbles and saracen pbles. I mean current account agreed so why to do adjustment.
Ask the Tutor ACCA FR
Paldin
Because when we (effectively) cross add these figures for the consolidation, we're going to be showing $1.2m payable by us to ourselves having a receivable of $1.2m receivable from ourselves
We ALWAYS eliminate intra-group balances.
There's a couple of examples of this in the free course notes - have you worked through those notes?
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