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.

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.

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