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Dividend paid to NCI
————–\—————-
(b) 1 …… | b/f ….. ……………110
…………. | profit attribute to NCI 6
c/f 115 …..|
…116…………………………….116Here is a T account used for group cash flow statement, the b/f figure was put at right side of T account, want to confirm the reason why it is right side and not left side. is that beacuse dividend paid to NCI is liability ? any of b/f figure should be at credit side ?
and if is is asset T account b/f figure should be put at right side?
Always confuse of T aacounts, need some clarification, aprreciate it
Hi,
it would be better if you post this question at the ask the tutor forum.
Generally, the assets/expenses b/f would be at the left hand side while the liabilities/equity/revenue b/f would be on the right hand side.
The tittle of the T account should be just NCI and dividend paid to NCI is part of the NCI account.
Dividen paid to NCI is on the right hand side (credit) because it is an amount owe to the non controlling interest party (a liability).
The link for the forum
https://opentuition.com/forum/ask-acca-tutor-forums/ask-the-tutor-acca-p2-exams/NCI is equity hence credit balance. It’s correct that the name of the account is NCI and dividends paid appear on the debit side (Dr NCI Credit cash). The closing balance of the account is carried forward on the debit above the line so that it will be a credit balance brought forward.
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