Will the income of $8638 appear on the debit side of Income accrued a/c (immidiately) and interest income on the Interest receivable a/c (gradually) on SFP and will both stay there untill the customer pays what he owes in 3-years time?

I see entries as:
Dr Loan to customer (SFP) $8,638
Cr Revenue (SPL) $8,638

Then each year (let’s say car was sold on Jan 1) we accrue finance component, it would be:
Dr Loan to customer (SFP) $457 (=$1,372/3, over contract term)
Cr Interest income (SPL) $457

5% is 0.05 so add 1=1.05.Then there is a sign that looks like a v facing down on your cal.Now type 1.05 on your cal then press that sign then 3 it will give you 1.157625.Now divide 10000 with the ans.

The lectures are great, thanks so much for providing them.

Would it be possible for you to tell me the calculator procedure for the below;

10,000/(1.05)3

I have searched and searched me MA notes and for the life of me I cannot remember howto do this. I presume we will not be given the tables for this exam and it has come up twice already in this topic.

its not 10000/(1.05)3 but its 1/(1.05)3 which is 0.863838 then multiply this by 10000 you then get $8638. I know its late but I believe others might be in the same predicament as well.

alisarwar43 says

1362 XDXDXD

Anna says

Hello,

Will the income of $8638 appear on the debit side of Income accrued a/c (immidiately) and interest income on the Interest receivable a/c (gradually) on SFP and will both stay there untill the customer pays what he owes in 3-years time?

Thank you!

mariakurina says

Hi!

I see entries as:

Dr Loan to customer (SFP) $8,638

Cr Revenue (SPL) $8,638

Then each year (let’s say car was sold on Jan 1) we accrue finance component, it would be:

Dr Loan to customer (SFP) $457 (=$1,372/3, over contract term)

Cr Interest income (SPL) $457

When customer pays:

Dr Bank

Cr Loan to customer

saabu says

Thank you!

folerence says

5% is 0.05 so add 1=1.05.Then there is a sign that looks like a v facing down on your cal.Now type 1.05 on your cal then press that sign then 3 it will give you 1.157625.Now divide 10000 with the ans.

ciarasmyth1409 says

Hi Sir,

The lectures are great, thanks so much for providing them.

Would it be possible for you to tell me the calculator procedure for the below;

10,000/(1.05)3

I have searched and searched me MA notes and for the life of me I cannot remember howto do this. I presume we will not be given the tables for this exam and it has come up twice already in this topic.

Kind regards,

Ciara

nomalangadube says

its not 10000/(1.05)3 but its 1/(1.05)3 which is 0.863838 then multiply this by 10000 you then get $8638. I know its late but I believe others might be in the same predicament as well.