Marie Bhd acquired 80% of Donny Bhd ordinary share capital on 1 January 2019. As at 31 December 2019, extracts from their individual statements of financial position showed: Accounts Marie Bhd (RM) Donny Bhd (RM) Current assets: Receivables 105,000 40,000 Current liabilities: Payables 90,000 21,000 As a result of trading during the year, Marie Bhd’s receivables balance included an amount due from Donny Bhd of RM5,000. Required: Explain the amount to be shown as the consolidated figure for receivables and payables. Please show your calculation.

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
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Marie Bhd acquired 80% of Donny Bhd ordinary share capital on 1 January 2019. As at 31 December 2019, extracts from their individual statements of financial position showed:

Accounts Marie Bhd (RM) Donny Bhd (RM)
Current assets: Receivables 105,000 40,000
Current liabilities: Payables 90,000 21,000


As a result of trading during the year, Marie Bhd’s receivables balance included an amount due from Donny Bhd of RM5,000.

Required:
Explain the amount to be shown as the consolidated figure for receivables and
payables. Please show your calculation.

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