Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

ACCA December Exams

Post comments & Vote in Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for March 2025 exams.
Get your discount code >>

Ch16 – Example 4 – pp66 – amortisation

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Ch16 – Example 4 – pp66 – amortisation

Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • June 26, 2017 at 2:37 pm #394117
    wgk
    Participant
    • Topics: 55
    • Replies: 80
    • ☆☆

    I followed the the calculations through for the amortisation and have a balance as shown below 🙁

    Year b/f 7.67% 4% c/f
    1 93.85 7.2 (4) 97.05
    2 97.05 7.4 (4) 100.49
    3 100.49 7.7 (104) 4.15

    Very curious, but the balance of 4.15 + 1.0 (issue costs) = 5.15 (the equity element)!!

    June 27, 2017 at 9:06 pm #394224
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7082
    • ☆☆☆☆☆

    Hi,

    Try using the effective rate of 6.34% and it should work.

    Thanks

    June 28, 2017 at 4:48 am #394238
    wgk
    Participant
    • Topics: 55
    • Replies: 80
    • ☆☆

    Bingo – it worked .
    Thanks

    June 28, 2017 at 1:13 pm #394266
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 7082
    • ☆☆☆☆☆

    Excellent and thanks for pointing out the typos too. I’ll keep a list of them and update them all together later.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.