iron ore samples, page-8

watso will give all readers of this thread (to the very select few, who even bother to read the gda threads these days), an accounting lesson. ok - watso missed out a few words in an earlier post - and will remedy that

this is how watso would have treated it

credit a SALE OF PROSPECT account , with two amounts - ie $207,500, and $655,000

the corresponding debits would be $207,500 to the CASH at BANK account, and $655,000 to an INVESTMENT - LISTED SHARES account

only the $207,500 , should have been shown in the cash flow satements . yes, it does look as if the caz shares are still held - but it was not a deliberately wrong statement by watso

to continue this hard hitting accounting lesson - when the shares are sold, there will be two entries. the sale proceeds will be a debit entry in the CASH at BANK account, and the credit entry will go to the INVESTMENT - LISTED SHARES account.

at the end of the reporting period, the balance of the INVESTMENT - LISTED SHARES account, will go to the P&L account - then this account will be closed off, and the balance transferred to the shareholders equity account