half yearly... watso confused, page-2

ok - the $65,000 is straight forward - that relates to application monies from the issue, which were received prior to the closing of the one for one issue. the accounting treatment for that, in the first instance would be a debit in the cash at bank account, and a credit in the application monies account, when the issue closed, or the shares were issued, the debit would go to the application monies, and the credit to the shareholders equity

the interest bearing loans included $155,000 from directors, which probably were fees which were left in the company, which earned interest (at dec 31, there was also $96,000 in ordinary payables to directors. at the time the expense was incurred (but not the actual payment), the debit would have been raised against director fees , and the credit to a loan account. when the payment was made, the credit would be from the cash at bank account, and the debit to the loan account. all that watso can assume is that the outstanding loans, in the case of directors, is that the expense is charged against either admin, or exploration. the third party loans are probably treated the same way.

how are director fees charged against admin, or exploration... well, it is probably a bit like a job sheet. if mr beckwith has a chat to the office girl, it is charged against admin. if the consulting geologist drops around to pick up his consulting fee of $1000 per day, and the geo, and mr beckwith look at a map of parker range, then that is charged as "exploration expenditure"

heh heh - watso has confused everybody