Trial balance as at 30 September 2017 bank loan (6% interest p.a) 1200 000 (Cr side) bank interest paid – 36 000 (Dr side)
Additional information: The bank loan was taken out in September 2010, in April 2018 170 000 will be repaid and the remainder of the loan is to be repaid in August 2030. = ( I have absolutely no idea about what to do with this information. Only thing I understood from this part is that this loan is a non-current liability)
(interest rates are quoted as annual percentages )
I have to record the journal entries and reflect it on financial statements.
So I am confused about how much bank interest I have to record on SOPOL expenses part, and how much bank loan I have to note on SOFP.