Six Co owns 80% of the equity share capital of Seven Co. At 31 December 20X4, the trade receivables and trade payables of the two companies were as follows： Six Co Seven Co Trade receivables $64,000 $39,000 Trade payables $37,000 $48,000 These figures include $30,000 that is owed by Seven Co to Six Co for the purchase of goods, for which Six Co has not yet paid. These goods were sold by Six Co for a profit of $15,000 and 50% of them were still held as inventory by Seven Co at 31 December 20X4. What should be the amounts for trade receivables and trade payables in the consolidated statement of financial position as at 31 December 20X4?
A、Trade receivables $73,000, Trade payables $55,000
B、Trade receivables $88,000, Trade payables $70,000
C、Trade receivables $95,000, Trade payables $77,000
D、Trade receivables $103,000, Trade payables $85,000
A、Trade receivables $73,000, Trade payables $55,000
B、Trade receivables $88,000, Trade payables $70,000
C、Trade receivables $95,000, Trade payables $77,000
D、Trade receivables $103,000, Trade payables $85,000
【参考答案及解析】
The $30,000 owed by Seven Co to Six Co is included within the receivables of Six Co and the payables of Seven Co. These intra-group balances should be eliminated for the purpose of consolidation. Trade receivables = $(64,000 + 39,000 - 30,000) = $73,000 Trade payables = $(37,000 + 48,000 - 30,000) = $55,000 The unrealised profit on closing inventory will be an adjustment to inventory on consolidation, and does not affect consolidated receivables and payables.
The $30,000 owed by Seven Co to Six Co is included within the receivables of Six Co and the payables of Seven Co. These intra-group balances should be eliminated for the purpose of consolidation. Trade receivables = $(64,000 + 39,000 - 30,000) = $73,000 Trade payables = $(37,000 + 48,000 - 30,000) = $55,000 The unrealised profit on closing inventory will be an adjustment to inventory on consolidation, and does not affect consolidated receivables and payables.