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Calculating the percentage of loan interest

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Calculating the percentage of loan interest

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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    Posts
  • October 4, 2016 at 10:42 am #342361
    Avatarasikka
    Member
    • Topics: 5
    • Replies: 4
    • ☆

    I am stuck here.
    The question has this information
    In the Trial Balance as at 30/06/x7 I have the loan amount of 10,000 and Loan interest paid of 300.

    In the additional information it says Loan taken out on 1/7/x6

    The solution page gives the following
    Charge for the year 10,000×6% = 600
    Amount paid as per trial balance = 300
    Accrual required = 300

    Hence finance costs have been considered as 600 and interest accrual as 300

    I don’t understand how the 6% is calculated??

    October 5, 2016 at 2:21 pm #342455
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    There must be more information in the question other than what you have typed (either the rate of interest, or details of when interest is paid on the loan).

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