I have just done the quiz, and worked really well for me, apart from question 1. I cannot figure, how they arrive at 70. I calcualated depreciation based on 7 months ok being 55,417, but then the rest of the amount in the answer as being the interest rate on 250.000. How was that calculated? Could you please specify?

There is an omission of space. It’s not a b/f of 1,750,000. It is actually the year ending ’17 – with 50,000.00 as initial entry. Same applies for the second row.

Good day. If payments are made in arrears we first calculate interest then deduct payments. If we pay in advance first we deduct payment then calculate interest. Hope you get it.

It is only when payments are made in advance. However, if payments are made in arrears interest rate is computed on the bal b/f before deducting the payment.

vinogradovaa says

I have just done the quiz, and worked really well for me, apart from question 1. I cannot figure, how they arrive at 70. I calcualated depreciation based on 7 months ok being 55,417, but then the rest of the amount in the answer as being the interest rate on 250.000. How was that calculated? Could you please specify?

Thanks.

vinogradovaa

tules says

380-130=250

We use this amount because the 250 is due immediately and then the interest is taken on the outstanding balance at the end of the year.

ogwo says

Please how was the balance b/f of $1,710,000,000 arrived at in the solution provided for question 6 ?.

Thanks.

ogwo says

Please how was the balance b/f of $1,750,000,000 arrived at in the solution provided for question 4 ?.

Thanks.

beckief says

Hi,

This might be too late.

There is an omission of space. It’s not a b/f of 1,750,000. It is actually the year ending ’17 – with 50,000.00 as initial entry. Same applies for the second row.

Abena@27 says

it’s not too late. you just saved me from a whole lot of confusion. I get it now. thanks. we need more of you here

nehadi says

How do I use the market discount rate on lease?

kennetho98 says

Apply the discount rate on the lease liability at year-end before deducting lease payments(if they’re paid in arrears)

goldybird says

Question 1- should depreciation not be calculated on the Right of Use asset valued at the present value of lease payments?

syhrhdrs says

Can someone please clarify? Do I calculate interest after deducting payments or before? Thank you!

princess924 says

Same here. How r we going to know if interest will be calculated after we r before the installment

mumula says

WHERE CAN I FIND SOLUTIONS,ANSWERS?

elnur96 says

Good day. If payments are made in arrears we first calculate interest then deduct payments. If we pay in advance first we deduct payment then calculate interest. Hope you get it.

ausra says

Question on 4 & 6. Aren’t the interest being calculated on the B/F AFTER cash deducted? This was in the lectures.

Thank you in advance!

kennetho98 says

It is only when payments are made in advance. However, if payments are made in arrears interest rate is computed on the bal b/f before deducting the payment.

radge says

Plz The 250000 used to charge 10% came from where?

riyasivaraj says

380000-130000=250000