• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

New! BPP Books for ACCA September 2022 Exams are now available, get your discount code >>

Financial instrument

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Financial instrument

  • This topic has 2 replies, 2 voices, and was last updated 11 months ago by P2-D2.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • July 7, 2021 at 9:58 am #627149
    kennigara
    • Topics: 181
    • Replies: 242
    • ☆☆☆

    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

    July 7, 2021 at 10:14 am #627150
    kennigara
    • Topics: 181
    • Replies: 242
    • ☆☆☆

    how do we each time record 40000 ?

    July 10, 2021 at 9:30 am #627327
    P2-D2
    Keymaster
    • Topics: 4
    • Replies: 6115
    • ☆☆☆☆☆

    Hi,

    The effective interest is DR Financial instrument CR Interest income – using the effective interest and the outstanding balance.

    The cash received is DR Bank CR Financial instrument – using the coupon and par value

    Thanks

  • Author
    Posts
Viewing 3 posts - 1 through 3 (of 3 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate

If you have benefited from OpenTuition please donate.

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • Manuga on ACCA AB Chapter 16 – How an individual can develop – Questions
  • Manuga on ACCA AB Chapter 16 – How an individual can develop – Questions
  • John Moffat on Discounted Cash Flow Further Aspects, Lease versus Buy – ACCA Financial Management (FM)
  • John Moffat on Accounting for Management – ACCA Management Accounting (MA)
  • ngtuanthungoc on FA Chapter 4 Questions Accruals and Prepayments

Copyright © 2022 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy