CIMA F1 Syllabus B. Financial Statements - Cashflow statement - finance costs - Notes 6 / 7
Cashflow statement - How to find finance costs PAID
| Income Statement | |
| Finance costs | 80 |
| Statement of Financial Position | X2 | X1 |
| Interest Payable | 100 | 140 |
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Solution
| Opening Payable (from SFP) | 140 |
| Income statement figure for year | 80 |
| Cash paid (balancing figure) | (120) |
| Closing Payable (from SFP) | 100 |
Finance costs of 120 paid go to the operating activities section of the cashflow statement.