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Primier
(iii) Premier had a trade payable balance owing to Sanford of $350,000 as at 30 September 2010. This did not agree with the corresponding receivable in Sanford’s books due to a $130,000 payment made to Sanford, which Sanford has not yet recorded.->Intra Group Adjustment
P S
R’bles (CA) 12500 2400-130-350
Cash (CA) 130
P’bles (CL) 10000-350 6800Pedantic
(iv) Sophistic’s trade receivables at 30 September 2008 include $600,000 due from
Pedantic which did not agree with Pedantic’s corresponding trade payable. This was
due to cash in transit of $200,000 from Pedantic to Sophistic. Both companies have
positive bank balances.->Intra Group Adjustment
P S
R’bles (CA) 16000 6600-200-600
Cash (CA) 200
P’bles (CL) 8200-600 4700Why Pedantic and Premier Intra Group Adjustment not treated in a similar way as i have done above?
Pedantic Intra group adjustment is done in different way in video lecture than above but pedantic and primier both looks similar to me; pls kindly help.Because we start off from different points.
In Pedantic we are given the figure in Pedantic’s records, so that figure is after recording the payment
In Premier we are given the figure in Sophistic’s records , so that figure is before the cash is received
OK?
Pedantic
(iv) Sophistic’s trade receivables at 30 September 2008 include $600,000 due from
Pedantic which did not agree with Pedantic’s corresponding trade payable. This was
due to cash in transit of $200,000 from Pedantic to Sophistic.Both companies have
positive bank balances.-> Sir, what is meant by “Both companies have positive bank balances.”
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