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Sir in this question mentioned above I am not able to calculate bet interest payable in statement of profit and loss..help plz
There are long term borrowings of 580 on which the interest is 8% (so interest of 46.4).
In addition, there is interest (per notes (vii) of the question) at 7% on the short term borrowing. Initially these borrowing at 230 (from the question) and so the interest is 16.1.
This gives total interest in the first year of 16.1 + 46.4 = 62.5 (the answer rounds it is 63).
It is the same calculation each year. The long term borrowings remain the same, but the short term borrowings change each year (and therefore the interest on them changes).
Sir how have been the “reserves”calculated in wurral inc… ??page 137 kaplan kit
I do not have the Kaplan Kit (only the BPP Kit), but I do have the original question.
As at 2004, the reserves (from the question) were 864.
In the pro-forma Statement of Profit or Loss in the answer, the retained earnings (transferred to reserves) for 2005 are 106.
Therefore the reserves in the Statement of Financial Position for 2005 are 864 + 106 = 970.Similarly in each later year the reserves increase by the amount transferred.
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