IndigoLearn

Forums

Preparation and presentation of financial statements

In illustration 1 u didn't make entry in other current liabilities for interest on debentures.... But in 2nd illustration u made entry for that in other current liabilities....?


abhishek kapale

abhishek kapale

CA Inter

980

09-May-20 14:20

27

Answers (1)

In the 1st illustration we interest on debentures given in the trial balance directly and so we have taken it as finance cost under statement of P&l. In the 2nd illustration interest on debenture is not given directly and as the debentures are given 6% interest rate we have assumed it to be opening balance of debentures and calculated interest payable. Interest payable is outstanding and hence it is appearing under other current liabilities in the balance sheet


ruchi lahoti

ruchi lahoti

Moderator

12-May-20 11:22

IL Pass percentages
Tally Free
Quote
Refer
EMI
Lazypay
Past_Exams