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Chapter 20

Example 17.4 cont'd

Workings continued
Payable

Disposal of sub 60 Balance brought forward 600

Consolidated on acquisition 120
of new sub

Balance carried forward 1,500 Increase (β) 840
––––– –––––
1,560 1,560
––––– –––––

Alternative working (no T account)

$000
Opening payables 600

Acquisition of sub 120

Disposal of sub (60)
Increase in payables β 840
–––––

Closing payable 1,500
–––––

An increase in payables will have a positive impact on cash during the period.
This is shown as a positive figure when calculating cash generated from
operations.

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