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Hi sir .
I’m struggling in bank interest income.
My question is below15months period to 30 June 2015
Bank interest( received 30 sep 2014) £22,000Bank interest (income) accrued was as follows:
At 1 April 2014 £5,200
31 March 2015 £4,100
30 June 2015 £9,780So my answer is y/e 31.3.2015 interest income £26,100(22,000+4,100)
3m 30.6.2015 interest income £ 9,780But Kaplan book explain is
y/e 31.3.2015 interest income £20,900 (22,000-5.200(?)+4,100)
3m 30.6.2015 interest income £ 8,000(. 9780-4100(?))
Could you explain about that pls?This is not a tax problem you have but an accounting problem in not understanding the accruals basis! The Kaplan answer is correct – in calculating the interest receivable during the accounting period you start by doing what you did – adding any amount received during the period to the closing accrual at the end of the period BUT you must then deduct the opening accrual as this would have been included in the previous period but would also be included in the amount received this period or where nothing has been received it would also be in the closing accrual!
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