- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
Sir please help me (a)
how net intrest payable is calculated as 63,65,66,70 for the year from 2005-2008 in the income statement.
And in the statement of financial position how the figure short term loans n over draft calculated as 266,287,332,320
And other payable as 514,556,595,630 for the year from 2005 to 2008
I am really stuck please help me its taking a long time without any output.
Thanks.The interest payable is interest on the non-current liabilities (580 at 8%) plus the interest on the short term borrowings which is 7% (from note (g) in the question).
So in the first year it is (580 x 8%) + (230 x 7%) = 62.5 (i.e. 63).
In later years, because the short term borrowing increases, so too does the interest.Note (f) says that any changes in financing needs are met by adjusting the overdraft.
When we prepare the SOFP each year, the overdraft is therefore the missing figure (balancing figure).Other payables are increasing in line with sales (note (d) in the question) and are therefore increasing at 8% next year, 7% the year after, and so on.
- You must be logged in to reply to this topic.