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Out of the Following, Identify the Items that Are Shown in the Note to Accounts on Finance Costs: - Accountancy

Short Note

Out of the Following, identify the items that are shown in the Note to Accounts on Finance Costs:
(i) Interest paid on Borrowing from prince Finance Ltd.;
(ii) Interest paid on Term Loan to Bank;
(iii) Interest paid on Public Deposits;
(iv) Loss on Issue of Debentures Written off; and
(v) Bank Charges.

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Solution

Items that will be shown in the Notes to Accounts on Finance Costs are:

i. Interest paid on Borrowings from Prince Finance Ltd.;
ii. Interest paid on Term Loan to Bank;
iii. Interest paid on Public Deposits;
iv. Loss on Issue of Debentures written off.

The Bank charges are not shown under Finance Costs but under ‘Other Expenses’, as they are expenses for the services availed from the bank. 

Concept: Role and Objectives of Financial Management
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APPEARS IN

TS Grewal Class 12 Accountancy - Analysis of Financial Statements
Chapter 1 Financial Statements of a Company
Exercise | Q 44 | Page 71
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