• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
OpenTuition | ACCA | CIMA

OpenTuition | ACCA | CIMA

Free ACCA and CIMA on line courses | Free ACCA, CIMA, FIA Notes, Lectures, Tests and Forums

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Forums
  • Search
  • Register
  • Login
  • Latest
  • ACCA
  • Ask ACCA Tutor
  • OBU
  • CIMA
  • Ask CIMA Tutor
  • FIA
  • Buy/Sell
  • Qualified
  • Forum Rules

ACCA December 2020 Pass rates are now available >>

Amortised Cost Table & Related Double Entries

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Amortised Cost Table & Related Double Entries

  • This topic has 2 replies, 2 voices, and was last updated 1 month ago by Stephen Widberg.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • November 26, 2020 at 3:22 pm #596572
    seano
    • Topics: 8
    • Replies: 9
    • ☆

    Hello,

    The amortised cost table is widely used to help arrive at figures needed in calculations when dealing with financial assets and financial liabilities. The common structure is:

    Opening Interest (effective rate) Payment (F.L.) / Receive (F.A.) Closing
    X X (X) / X X

    I know that the interest (effective rate) is what ia charged to the Income Statement as this is the effective interest we are paying (due to different circumstances that can be applicable with these instruments).

    I’ve gotten quite confused using this table because if we take a financial liability for example we charge the effective interest (2nd heading above) to the income statement; But for the actual payment (3rd heading above) should this not be our finance charge going to the income statement as this is what we do actually pay on the loan? Could you help me with the double entries when you have a typical financial liability and the charges going to the income statement and payments made please?

    November 26, 2020 at 4:13 pm #596591
    seano
    • Topics: 8
    • Replies: 9
    • ☆

    I had the table above neatly arranged but when I submitted the question it got jumbled into mess due to formatting. It should look like:

    Opening ——— Interest (effective rate) ———–Pay/Receive——————-Closing
    —X——————————X—————————–(X)/X——————————X

    November 27, 2020 at 9:26 am #596654
    Stephen Widberg
    Moderator
    • Topics: 7
    • Replies: 1261
    • ☆☆☆☆☆

    Second column

    Dr P&L Cr Financial liability

    Third column

    Dr Financial liability Cr Cash

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA Exam Results – Comments

ACCA PM December 2020 Exam Results ACCA TX December 2020 Exam Results ACCA AA December 2020 Exam Results ACCA FR December 2020 Exam Results ACCA FM December 2020 Exam Results ACCA SBL December 2020 Exam Results ACCA SBR December 2020 Exam Results ACCA AAA December 2020 Exam Results ACCA AFM December 2020 Exam Results ACCA APM December 2020 Exam Results ACCA ATX December 2020 Exam Results

Donate

If you have benefited from our materials please donate

Donate now

You can also "donate your time" and help out other students on the Students Forums

Specially for OpenTuition students

20% off ACCA Books

Get BPP Discount Code

Latest comments

  • Kim Smith on AA Chapter 19 Questions
  • bsufll on AA Chapter 19 Questions
  • sarabande0206 on ACCA Administrative Review
  • Manny888 on Corporate Governance – ACCA Audit and Assurance (AA)
  • Salma889 on Diversification – ACCA Strategic Business Leader (SBL)

Copyright © 2021 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy