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Chapter 12

Example 12.3

Extracts from the statements of financial position of Paulie and its
subsidiary, Sal, at 31 December 20X8 are as follows:
Paulie Sal
$000 $000
Current assets
Inventory 1,350 252
Receivables 1,170 171
Cash 720 153
Current liabilities
Payables 1,620 360

Paulie acquired 100% of Sal five years ago.

Paulie and Sal traded with each other and, at the reporting date, Paulie owed
Sal $45,000. This balance is stated after Paulie had recorded that they had
sent a cheque for $9,000 to Sal shortly before the year-end which Sal had not
received by the reporting date.

Required:

What balances would be shown in Paulie's consolidated statement of
financial position at 31 December 20X8 for each category of current asset
and current liabilities?

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