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Hi, I was just wondering, for the W3 retained earnings, for the finance cost, when we deduct the unrolled discount from the retained earnings why do we only deduct the year apportioned (7/12 * 3000) but we do not deduct the deferred consideration(30000) as well?
Thank you.
Because the deferred consideration is still a liability as at the year end (as also is the unrolled discount for which the double entry will have been Dr Finance charges (in profit or loss / retained earnings) Cr Deferred Liability)
OK?
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