The trial balance and additional information given below were extracted from the accounting records of Lafarge Limited on 29 February 2016, the end of the financial year
Prepare the Statement of Financial Position as at 29 February 2016.
PRE-ADJUSTMENT TRIAL BALANCE AS AT 29 FEBRUARY 2016
Long-term loan: Aries Bank (16% p.a.) R 80 000 (CREDIT)
Adjustments and additional information
The loan from Aries Bank was obtained on 01 September 2015. Provide for the outstanding interest. (Interest is not capitalised.) Loan repayments (excluding interest) are expected to amount to R12 000 in the next financial year.
How will be the adjustment be entered in statement of financial position (Balance sheet)