Consolidated FS

Accountancy

Please explain the meaning and effects given of adj C and D of Illustration 10 Also, Why is Provision added back to receivables and reserves?

Priyanka Udeshi

CFA L1

★ 14K+

19-Aug-21 02:30

664

Answers (1)

We have to adjust provision of doubtful debts it is given that B ltd deducts 1% which means the balance given in question of trade receivables is after adjustment so we did a reverse calculation to find The amount and added it back to reserves and trade receivables The advertisement expenditure is written off Provision is added back because we have to adjust books for consolidation due to different accounting policies read the paragraph given above solution in module.

roshini reddy

CA Inter

★ 1K+

19-Aug-21 10:41