Financial instrument

Example 3 (Norman) in opentuition

Hi Dear tutor, I have some questions and I will not write the whole question here.

Coupon interest

4%*100$*10000=40000 per annum*4 years=160000

Year————–B/F————Effective interest rate(5.73%)—————Cash———–C/f

1——-980000————————-56154——————————–(40000)———-996154

2—–996154————————–57080——————————–(40000)———1013234

3—-1013234————————58058———————————–(40000)——-1031292

4—-1031292———————–59093———–(40000+1050000)=1090000——-nil

total=================230000

Which is correct?

Interest received each year

Debit bank 56154
credit interest receivable-56154

at the end of the year double entry

debit investment—230000
credit interest receivable—230000

is it correct?

cash pay each year

Debit interest–40000

credit bank–40000

at the end of the final year how can i record 1090000 as a double entry?

debit

credit