[Maliha]

b/f (A) face value (B) EIR (C) c/f
year 1 304,335 7,200 24,347 321,482
2 321,482 7,200 25,718 340,000
3 340,000 7,200 27,200 360,000

If im not wrong the c/f figure will be calculated as A + (C-B), correct?
Also, what would be the journal entries for the initial recognition and year 2?

[Maliha]

Thank you for the replies,

I feel like Becker comes in between the two suggestions. Regardless of your first language, it’s neither too complicated nor too simplified.

[Maliha]

Let’s say my company in country A buys raw materials from country B with an amount of $1000. I pay $200 now and the remaining will be paid once the goods have been delivered (as per the contract). What would the entries be for this transaction?

-Country A currency: Rials
-Country B currency: Dollars

[Maliha]

Hi again, sorry this got left behind. Had to bring it back up for a response.

Thank you

[Author]

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