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Cash flow statement ( finance activities)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Cash flow statement ( finance activities)

  • This topic has 1 reply, 2 voices, and was last updated 8 years ago by MikeLittle.
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  • Author
    Posts
  • November 12, 2016 at 9:03 pm #348643
    coop
    Participant
    • Topics: 29
    • Replies: 45
    • ☆☆

    Hello Sir,

    the trial balances as at 31 March 2015

    8% loan notes 20,000
    Suspense account 5,800

    On 31 March 2015, one quarter of the 8% loan notes were redeemed at par and six months’ outstanding loan interest was paid. The suspense account represents the double entry corresponding to the cash payment for the capital redemption and the outstanding interest.

    the answer was :
    Redemption of loan notes (5,000.00) as cash outflow

    Where is the amount of 800 here (the six months’ outstanding loan interest was paid ) ??

    November 12, 2016 at 9:32 pm #348653
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23327
    • ☆☆☆☆☆

    That $800 will be in the operating activities section included within the figure for Interest Paid

    The only element within financing activities re this transaction is the figure involved in repayment of the loan liability

    OK?

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