DFS June 2007 paper

Tinkerbell007

Hope someone can help - my brain is overloaded!

On the DFS June 2007 paper - question 1.2b - drafting the balance sheet - in the current liabilities section they have only included six months of interest charges (£490)- there is already six months of charges in the TB and then a further six months is asked for in question 1.1 (journals) - why is only six months included in the balance sheet?! Should the total of £980 not be included??!!

A-Vic

in the first question did you have to adjust the interest? on the ETB or jornals?

Tinkerbell007

In the first part of the question six months interest of £490 was included in the TB but six months were not (so another £490 to be included and a journal is done accordingly in question 101) - £980 for finance costs is included in the income statement but I can't get my head round why only half is in the SFP?!

So not looking forward to Thursday!!

A-Vic

in that case you just bring forward the figure its telling you the figures have been ommited from the accounts and they need adjusting

Esme

I think half is added into the SOFP on the trade and other payables line as it's like an accrual.

Tinkerbell007

Thank for your help! Makes sense now!! Hope revision is going well for you both!