Interest would be shown in the P&L and carried to the B/S in the Net Profit/Loss figure.
If as you state interest is shown seperately in equity rather than through the P&L then to my mind your software is incorrect as the P&L would be over/under stated (depending on whether interest is receieved or paid).
That said whilst the P&L would be incorrect the B/S would still be correct just with interest seperated out.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
