03-09-2010, 08:54 PM
Good day dear members,
Q as follows
D LTD controls C LTD, owing 60% of its ordinary share capital.At groups year end, 31 December 2008, C included 6000 in its receivable i.r.o goods supplied to D.However, the payables of D included only 4000 i.r.o amounts due to C.The difference arose because , on 31 December 2008, D sent a cheque for 2000, which was not received by C until 3 January 2009.
Now on consolidation
Consolidated receivable will decrease by 6000
Consolidated payables will decrease by 4000
And my inventory in-transit will include 2000
Please comment on the above.
Many thanks
Flora
Q as follows
D LTD controls C LTD, owing 60% of its ordinary share capital.At groups year end, 31 December 2008, C included 6000 in its receivable i.r.o goods supplied to D.However, the payables of D included only 4000 i.r.o amounts due to C.The difference arose because , on 31 December 2008, D sent a cheque for 2000, which was not received by C until 3 January 2009.
Now on consolidation
Consolidated receivable will decrease by 6000
Consolidated payables will decrease by 4000
And my inventory in-transit will include 2000
Please comment on the above.
Many thanks
Flora