watso will give all readers of this thread (to the very select...

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