Page 255 - F2 Integrated Workbook STUDENT 2019
P. 255
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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