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Sir help me find the SFP figure of this question n
The fair value of an asset, acquired under a finance lease commencing on 1 july,2007,is $ 10000.The lease is for 3 years with annual payment in advance of $ 4021. Interest is to be allocated on an actuarial basis,at an implicit rate of 22.25%.
Sir I confused whether there is any non current liability.. I guess the only liability here is current liability of 4021.Am I right sir?Sorry I forget to post the requirement..
Here it is..
Show the accounting entries in the financial statements of the lesses for the year ended 30june 2008.10,000 fair value at 1. 7.07
( 4,021) paid on 1. 7.07
5,979 capital o/s at 30. 6.08
1,330 int for yr to 30. 6.08
7,309 total o/s at 30. 6.08
( 4,021) paid on 1. 7.08
3,288 capital o/s at 30. 6.09
731 int for yr to 30. 6.09
4,019 total o/s at 30. 6.09
( 4,021) paid on 1. 7.09So, at year end 30 June 2008 there is a total amount outstanding of 7,309
Of this amount, 1,330 relates to the interest and is included as an expense in the SoPorL for the year ended 30 June, 2008
Capital outstanding at 30 June, 2008 is 5,979 and that needs to be split into current and long term
Capital outstanding at 30 June, 2009 is 3,288
So, of the amount of 5,979 capital outstanding at 30 June, 2008, 3,288 is still outstanding one year later
Therefore, of the 5,979, 3,288 is a long term liability and 2,691 is a current liability
So total current liability as at 30 June, 2008 is 2,691 in respect of the capital and 1,330 in respect of the interest accrued ……
…… and that gives a total within current liabilities of 4,021!
OK?
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