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bank loan and interest

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › bank loan and interest

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by Ken Garrett.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • November 15, 2017 at 4:19 am #415825
    jgunel
    Member
    • Topics: 13
    • Replies: 3
    • ☆

    Hello.

    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.

    (thanks in advance)

    November 15, 2017 at 9:22 am #415884
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10591
    • ☆☆☆☆☆

    This is not an F1 question. Try the F3 forum.

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  • The topic ‘bank loan and interest’ is closed to new replies.

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