A company has taken a loan of 360,000 on 1 may 20X6 at the rate of 10% p.a . The interest is payable every six month in arrear. Calculate the accrued interest for the year ended 30 April 20X6??
Sir my ans is coming
360,000×10%×2/12 = 6000
But it is wrong sir can you calculate the right ans?
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4y ago#1Two things.
Firstly interest isn't accrued for the year - it is accrued at the end of the year.
Secondly however, I think you must have your dates wrong. Given that they did not take out the loan until 1 May 20X6, there is no accrued interest at 30 April 20X6 (because there was no loan as at that date!!!).
Sorry sir my mistake it was the loan was taken on 1 March 20X6
4y ago#3If you have now copied the question correctly, then the accrued interest is indeed $6,000.
If this is a question from the current edition of the BPP Revision Kit then tell me the number of the question and I will check.
No sir it is from a different book
4y ago#5In that case it seems as though your book has made a mistake if their answer is different!!
Best always is to use a Revision Kit from one of the ACCA Approved Publishers (BPP or Kaplan).
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