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Hi Sir,
It’s about the cash flow statement in question 19.5.
Why isn’t the interest of loan note paid shown on the cash flow statement? Thanks sir!!Sir, please also help to explain the task 3 of 19.1
I don’t quite understand why they credit disposal account and debit suspense account.
Oh sir, I realized that in Question 19.5 the statement of cash flow is for the year ended 31 Dec 20X2 and interest was paid in 20X4.
19.5. The statement is for 20X4, not for 20X2 !!!
the statement given in the question starts with the net profit before tax, and this is the profit after the interest of 300 (i.e. 2,350). So we do not show the interest a second time.19.1 The correct entry when the cash received for the disposal is to Dr Cash and Cr Disposal. It says under task 2 that they have made the cash entry (but not made any other entries. Therefore they do need to Cr Disposal account, the the debit entry will be to the suspense account.
Have you watched my free lectures on this? The lectures are a complete free course for Paper FA and cover everything needed to be able to pass the exam well.
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