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Hi John, the question is in the BPP textbook (1 Sep 2020 to 31 Aug 2021).
It is question 100 (b) under the section PRACTICE QUESTION BANK.
Hope you able to trace the full question and clear my doubt. Tq.
Hi, I have a question regarding interest on cash deposit at the bank.
I dun understand why the answer shows the interest on cash deposit at the bank is added into operating activities? But not added into investing activities as interest received?
The question as below:
Flail Co commenced trading on 1 January 20X1 with a medium term loan at $21,000 and a share issue which raised $35,000. The company purchased non current asset for $21,000 cash and during the year to 31 dec 20×1 entered into the following transaction.
(v) interest on cash deposit at the bank amounted to $75
Your advice is highly appreciated.