"During y/e 31/03/2015 M plc paid loan stock interest of £22500. Loan stock interest of £3700 was accrued at 31/03/2015, with the corresponding accrual at £4200. The loan is used for trading purposes."The result of loan stock interest payable is (22500+3700-4200)22000. But I just wonder the reason why we should less 4200(corresponding accrual).
Ask the Tutor ACCA TX-UK
corporate tax-interest payable
Are you quoting the full words in the question or does it say the corresponding accrual at 31/03/14 was 4200?
Sorry, it also says the corresponding accrual at 31/03/14 was 4200?
it also says the corresponding accrual at 31/03/14 was 4200.
In which case this is just the normal accruals basis of computing what was payable in the accounting period! (this is the accruals concept at the basis of your accounting studies!)
The 4200 was included as payable in the previous accounting period but is a part of the amount actually paid in this accounting period so must be deducted
thanks
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