what should be included in the tax adjusted trading loss ?
in his statement of profit or loss for the y/e 31 march 2016
interest payable 31200
x ltd issued a loan note and this was used for trading purposes interest of £20800 was paid on 31 December 2015 and £10400 was accrued at 31 march 2016
Ask the Tutor ACCA TX-UK
accruals basis
Interest PAYABLE for the accounting period is deducted as given in the question - here in deriving the adjusted trading loss as the loan is a trading loan
but in the answer it says interest is zero why
Thank you Nafisha for explaining the background to the question - interest payable on a trading loan is an allowable deduction in deriving the adjusted trading profit so that if this figure has already been deducted in deriving the profit figure from which you commence the adjustment of profit statement then a zero adjustment is required
Sign into reply to this topic.