Alex plc is preparing its financial statements for the 12-month reporting period ended 31 August 2023, having prepared an initial trial balance which includes the following balances:
Accruals as at 1 September 2022 £948
Interest paid £2,733
Of the accruals as at 1 September 2022, £362 related to interest payable.
As at 31 August 2023 accruals will include £419 related to interest payable.
In Alex plc’s income statement for the 12-month reporting period ended 13 August 2023 the finance costs will be?
Select ONE answer:
- £2,204
- £2,676
- £2,733
- £2,790
Show your workings to arrive at your answer, and explain and justify your reasons:
……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………
This multiple-choice question is suitable for Accounting KS5 classes.
The answer is 4
- Not correct
- Not correct
- Not correct
- Correct == > Dr Bank Payments £2,733 + Bal c/d £419 = Total £3,152 – Cr Balance B/D (reversed) £362 == > I/S £2,790
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