Bond accounting - Humming co

You need to summarise the question in your own words. Other candidates don't want to have to try and find Humming - or whatever it is. Not quite sure what you are asking, but remember that 2 ledger accounts are maintained - bond and allowance. The bond account stays at 10m. The 2 ledger accounts are then netted off in the FS. Effective interest is calculated on the GROSS amount. This is a recent exam question - you will find a full debrief in our online revision kit.