Accounting problem...Please please help me :(

[ICCWC2015]

Past paper http://www.xtremepapers.com/papers/CIE/Cambridge IGCSE/Accounting (0452)/0452_s04_qp_3.pdf
Mark scheme
http://www.xtremepapers.com/papers/CIE/Cambridge IGCSE/Accounting (0452)/0452_s04_ms.pdf

Question 3 (c)
I don't understand why interest charged on the overdraft is added to Current liabilities..(I thought interest charged is only an expense and appears only in P/L account)
I don't understand why the prepaid expense is added to the corrected net profit (I thought it has to be deducted due to Matching principle)

Thanks for helping

 

[theiceman]

overdraft is written coz it is not yet paid,means accured expense,accured expense will appear in p/l a/c as well as in balance sheet.....
Prepaid expense is always detucted from expenses,to apply matching principle....as expenses are going to b less than B4 so net profit is gonna rise....
hope that works ^ . Always go 4 concept !

 

[ICCWC2015]

Thank you thank you thank you