Page 441 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Answers

Example 17.4 cont'd

Workings continued

Trade receivables
B/f 600

Consolidated on acquisition of 600 Disposal of sub 135
new sub
Decrease (β) 165

C/f 900

––––– –––––
1,200 1,200
––––– –––––

Alternative working (no T account)

$000
Opening receivables 600

Acquisition of sub 600

Disposal of sub (135)
Decrease in payables (β) (165)
–––––

Closing receivable 900
–––––

A decrease in receivables will have a positive impact on cash during the period.
This is shown as a positive figure when calculating cash generated from
operations.

Workings continued overleaf

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