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Basic group accounts (F1 revision)

3.3 Outstanding balances

If an intra-group sale occurs on credit, amounts may still be outstanding at the year
end.

If the outstanding balances AGREE:

Cancel out immediately

Dr Payables

Cr Receivables

If the balances do NOT AGREE due to CASH IN TRANSIT

1. Treat cash as 2. Cancel out intra-group
received at year end balances

Dr Cash Dr Payables
Cr Receivables Cr Receivables

If the balances do NOT AGREE due to INVENTORY IN TRANSIT

1. Treat Inventory as 2. Cancel out intra-group
received at year end balances

Dr Inventory Dr Payables
Cr Payables Cr Receivables

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