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Hi
Preparation paper 2 BPP revision kit. Leases. I put interest payable on long term and current liabilities. I see one of your lectures did as well. The answer leaves it out.. Any good reason?
It is in the latest BPP revision kit and it is a preparation question. Number 2 (leases). the answer show excluding interest amount and no item for interest separately
i use the prep questions for my standards revision
Hi,
You do not need to put in any interest payable as there is none yet that has been accrued at the end of the current year. The first payment next year pays off the interest for that year, which hasn’t been accrued at the current reporting date. It is different when the payments are in advance, which is where you maybe getting confused.
Thanks
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