loan notesForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › loan notesThis topic has 1 reply, 2 voices, and was last updated 8 years ago by John Moffat.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts September 13, 2016 at 12:35 pm #340325 firelion28MemberTopics: 159Replies: 83☆☆☆Argonaut Co issued $400,000 12% loan notes for $380,000 What are the accounting entries?Sir how and why are they two diffreent amounts ie one of 380000 and 400000 and on what amount do we pay them interest?? September 13, 2016 at 1:37 pm #340336 John MoffatKeymasterTopics: 57Replies: 54354☆☆☆☆☆The accounting entries for debt issued at a discount are not in the syllabus for Paper F3 (it is quite complicated and isn’t tested until P2).Interest is always calculated on the nominal value, whatever the circumstances.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In