Help journals iin Unit 11
Comments
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atleast we all agree you Dr Interest (finance costs)0
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it's an other Payable where the trade creditors is on it's own and lists it separatly Trade payable includes all the payables which is why they say and other payables and not just trade payables, i don't know why they do this as i still list it all the payable separetly when i do it as it makes it easier for me to rememberAgreed but it still has nothing to do with trade and other payables.
Yes please steve could you clear this up0 -
messedup89 wrote: »atleast we all agree you Dr Interest (finance costs)
Amen0 -
we're half way there0
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But also would you put tax in trade and other payables??? so why would you put interest in trade and other????
Sorry am like a dog with a bone.0 -
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How would you do a tax journal?0
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tax still goes in current liabilities tho. the key word is trad and ''other'' payables. I dont know why they put some in and not others. Shouls just keep them all separate like they used to0
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lilac_angel wrote: »How would you do a tax journal?
Dr Corp Tax Expense (I/S)
Cr Corp tax Liability (SFP)0 -
I do Dr Taxation Cr Taxation Payable, which is the same as how the AAT do it in their examsmessedup89 wrote: »Dr Corp Tax Expense (I/S)
Cr Corp tax Liability (SFP)0 -
lilac_angel wrote: »I do Dr Taxation Cr Taxation Payable, which is the same as how the AAT do it in their exams
Different wording same conclution0 -
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lilac_angel wrote: »but it's the exact same wording as my interst calculation just with Taxation instead
That's what I do and how I remember it too!!0 -
lilac_angel wrote: »but it's the exact same wording as my interst calculation just with Taxation instead
got a point there0 -
i think your just been picky now i just aggreed with your answer?0
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well you would not put in trade and other payable .would be interest payable !0
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lost0
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messedup89 wrote: »lost
only caught end of thread !!! what was orginal question ?0 -
How to do a journal for Intrest that has been omitted from the accounts of the trial balancemark130273 wrote: »only caught end of thread !!! what was orginal question ?0 -
Dr Interest £
Cr Interest Payable £0 -
you know what tho its one mark and there is a great deal more to worry about over a journal but as said before if you just show your workings so they can understand where your coming from i wouldnt worry.
But i would like to wish us all good luck for next wednesday
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Yeah, good luck everyone.
This time next week we'll all feel as sick as pigs.0 -
Good luck everyone0
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Good Luck peeps 0
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dobbieobby wrote: »Yeah, good luck everyone.
This time next week we'll all feel as sick as pigs.
Think my sickness is already kicking in :scared:0 -
Hi,
I have been teaching this example on my revision courses and have been asked this question frequently.
With finance costs you usually have to include the last 6 months of the year as an adjustment to an initial trial balance.
You should include the 6 month interest charge as an accrual which would be included within trade and other payables in the statement of financial position. I can see why there is confusion because it isn't a 'trade payable' but the description under current liabilities is 'Trade and other payables'. The model answers (and my suggested answers) follow the same accounting treatment. Usually you find trade and other payables and the tax liability under current liabilities.
It should always be included within current liabilities because it will fall due within one year from the reporting date.
Kind regards
Steve0 -
Thanks steve - i stand corrected so its like for instance (formally know as) p/l has grouped admin and distribution the same had happened with Trade and other it has also been grouped.
Sorry everyone you can slap me later lol0 -
I think it's all a case of splitting hairs to be honest and you're getting into the absolute minutest of detail. In the journals if you debit finance costs in the comp income statement and credit interest payable, then that's still correct. Other people may debit finance costs and credit accruals. Others show the interest payable as a separate line item in the statement of financial position.
Strictly speaking it should go within trade and other payables but in the grand scheme of things (I suppose a pedantic marker might raise their eyebrows), but if you did forget and showed it as a separate line item it wouldn't be too much of a disaster!
Keep plugging away at the Q practise - it'll soon be over!
kind regards
Steve0 -
Thank you all for replying. I am cleared
Hi, guys.
I got the answer from distance learning tutor.
The following is what he said.
"The reason why the mock exam is different is because it is a debenture.
June 2009 and June 2008 is just interest on a bank loan (different from debenture).
So both are correct, it all depends if the interest is on a bank loan or for debentures."
I just know the interest on a bank loan is different from debenture.
does it make us clear.
Thank you all.
Carolyn0
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