Page 501 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Answers

Exxampple 5

Thee following extracts aare provideed from thee statements of financcial positioon
of PP and S at the year-eend:

P P S
$0000 $0000
Current asseets
Inveentory 1000 50
Recceivables 2770 80
Cassh and cassh equivaleents 1220 40
Current liabilities
Payyables 1660 90

P's statementt of financiaal position includes aa receivable of $40,0 000 being ddue
fromm S. S hass a payablees balancee of $30,0000 due to PP.
Shoortly beforee the year--end, S sennt a cheque for $4,0000 to P. P ddid not
receive this cheque until after the year-end. Also, P haad dispatchhed goods to
S wwith a valuee of $6,0000 but S hadd not received them by the yeaar-end.
Reqquired:

Whhat balances will be shown inn the consolidated sstatement of financiial
possition (CSFP) of thee P group ffor the abbove itemss?

Sollution
Consolidatedd statement of finanncial posittion (extraact)

$0000
Current asseets
Inveentory (100 + 50 + 6) 156
Recceivables ((270 + 80 −− 4 − 36) 3310
Cassh and cassh equivaleents (120 ++ 40 + 4) 164

Current liabilities
Payyables (160 + 90 + 6 − 36 ) 2200

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