Loan Relationships Flashcards
1
Q
Bank Account - Loan relationship?
A
Yes
2
Q
Debetures - Loan relationship?
A
Yes
3
Q
Trade creditors - Loan relationship?
A
No
4
Q
Trade debtors - Loan relationship?
A
No
5
Q
Loan arrangement fees - deductible?
A
Yes
6
Q
How do we treat the loan arrangement fees in the comp?
A
Spread over the period of the loan, similar to interest
7
Q
State whether the following are treated in the trade profits comp or if they are taken out to Loan relationships and treated seperately:
A loan to buy plant and machinery A loan to buy a factory A loan to buy rental premises Lending money to another group company A loan to buy investment property A loan to buy shares in another company, including a subsidiary. A company receving bank interest Lending money to employees A bank overdraft A loan to buy stock Interest on over or underpaid CT
A
Trade Trade Non Non Non Non Non Non Trade Trade Non
