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 ) ??
Ask the Tutor ACCA FR
Cash flow statement ( finance activities)
9y ago#1That $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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