- This topic has 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
- You must be logged in to reply to this topic.
Instant Poll - Read and post comments:
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
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??
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).