I n t e r a c t I v e t e X t foundations in Accountancy/ acca financial accounting (ffa/FA) bpp learning Media is an acca approved Content Provider

Share capital and reserves 

There will be a separate account for: 

(i) 

Each different class of share capital (always a credit balance b/d) 

(ii) 

Each different type of reserve (nearly always a credit balance b/d) 

 

(e) 

Finance costs 

Finance costs mean interest paid. They include interest on bank loans, the loan stock interest in 

(c) above and the dividend paid on redeemable preference shares. The entries are exactly the 

same.  

DEBIT  

Interest account (an expense, chargeable against profits) 

CREDIT 

Interest payable (a current liability until eventually paid) 

 

 

 

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CHAPTER 19  

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  INTRODUCTION TO COMPANY ACCOUNTING