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Plastik ( Kaplan exam kit 407)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Plastik ( Kaplan exam kit 407)

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by P2-D2.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 3, 2021 at 4:40 am #619490
    nitinmayur.12@gmail.com
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    May I know why is cash in transit amounting to 400,000 deducted from trade payables? This is so confusing, in study text Kaplan it says CIT should only be reduced from TR and increased in cash but in exam kit it’s different, could you please help me out?

    May 6, 2021 at 9:53 am #619837
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7172
    • ☆☆☆☆☆

    Hi,

    I think that this question has been answered previously within the forum. I think you are missing the point about the fact that the company has an overdraft that is part of current liabilities, where the cash received will reduce the overdraft.

    Thanks

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