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sscorssscors Feels At HomeRegistered Posts: 72
Does anyone know why prepayments are included in trade receivables calculation for statement of finanacial balance and why distributions costs are included in trade payables and other payables figure

Comments

  • missm4ry4mmissm4ry4m Well-Known Registered Posts: 177
    Hi

    Prepayment has already been paid hence you add it to Trade Receivables as it is a payment brought forward which needs to be included in the current financial year.

    Distribution costs owing are an accrual which falls in the current year hence it needs to be included in the Trade Payables figure in the SFP.
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