FI - Question bank - Task 2 - revision example 3
Zana
AAT Student Posts: 27
Hi All!
Can somebody, please clarify section of task 3 for me?
I have highlighted the part that I am struggling with, please see attached.
In the workings for Trade and other payables the interest is £750, but we have been told that the interest on the bank loan for the last 6 months of the year has not been provided for and in the Trial balance there is £750 as interest paid. So shouldn't the answer in the workings be £1500 - obviously I have a knowledge gap here, could someone please explain this to me?
Many thanks in advance for your help!!!
Can somebody, please clarify section of task 3 for me?
I have highlighted the part that I am struggling with, please see attached.
In the workings for Trade and other payables the interest is £750, but we have been told that the interest on the bank loan for the last 6 months of the year has not been provided for and in the Trial balance there is £750 as interest paid. So shouldn't the answer in the workings be £1500 - obviously I have a knowledge gap here, could someone please explain this to me?
Many thanks in advance for your help!!!
0
Comments
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You are correct that the interest charge for the whole year is £1,500. £750 interest was paid as shown on the trial balance and therefore £750 is held on the interest payable account as owed.AAT
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