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19.5 loan note interest

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › 19.5 loan note interest

  • This topic has 4 replies, 3 voices, and was last updated 5 years ago by AvatarJohn Moffat.
Viewing 5 posts - 1 through 5 (of 5 total)
  • Author
    Posts
  • November 21, 2020 at 4:17 pm #595978
    Avatartushargujral
    Participant
    • Topics: 66
    • Replies: 95
    • ☆☆

    sir we havent included finance cost while profit before tax. is it because of loan note interest paid. if so please explain why

    November 21, 2020 at 5:41 pm #595988
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    Although we normally start with the profit before interest and before tax (2,650 in this case) and then show the interest paid (300) separately, in the spaces left to be filled in for the answer it specifically asks to start with the profit before tax (which is 2,350) and does not have a space for showing the interest paid.

    November 21, 2020 at 6:23 pm #595994
    Avatararahnsathananthan
    Participant
    • Topics: 64
    • Replies: 82
    • ☆☆

    Hi John, why is the profit before tax for 19.4 410 then ? The answer has added 60 to 350

    Arahn

    I

    November 21, 2020 at 6:25 pm #595995
    Avatararahnsathananthan
    Participant
    • Topics: 64
    • Replies: 82
    • ☆☆

    oh I understand now. Thanks John.

    November 22, 2020 at 9:18 am #596023
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 5 posts - 1 through 5 (of 5 total)
  • The topic ‘19.5 loan note interest’ is closed to new replies.

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