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Total equity
Non-current liabilities 8% Loan notes
$000
30 June 20X7 = 10000
30 June 20X6. 8000Additional information:
The additional loan notes were issued on 1 January 20X7. All interest due was paid on 31December 20X6 and 30 June 20X7
.Sir , I try to do it . but I can’t get that
In book how they did it like this
Interest Payables 8% x 1/2(8000-10000) = 720
Please help with this question
Can you solve this question and explain me ??From 1 July 20X6 to 31 December 20X6 the loan notes were 8,000 and so the interest for this 6 months is 1/2 x 8% x 8,000.
On 1 January 20X7 they issued 2,000 more loan notes and the total went up to 10,000. So the interest for the 6 months from 1 January 20X7 to 30 June 20X7 is 1/2 x 8% x 10,000.
The total interest for the year is the two added together.
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