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At 31 December 2002 the following matters require inclusion in a company’s financial statements:
(1) On 1 January 2002 the company made a loan of $12,000 to an employee, repayable on 30 April 2003,
charging interest at 2 per cent per year. On the due date she repaid the loan and paid the whole of the interest
due on the loan to that date.
(2) The company has paid insurance $9,000 in 2002, covering the year ending 31 August 2003.
(3) In January 2003 the company received rent from a tenant $4,000 covering the six months to 31 December
2002.
For these items, what total figures should be included in the company’s balance sheet at 31 December 2002?
Currents assets Current liabilities
$ $
A 22,000 240
B 22,240 nil
C 10,240 nil
D 16,240 6,000This loan is current asset because its maturity ( 30 April 2003 ) is shorter than 1 fiscal period ( 1 year ) after the reporting date ( 30 December 2002 ).
A current receivable loan is an allowance of the loan which is receivable until 1 fiscal period after the reporting date.
for other example, on 1 January 2002 a loan is made with the maturity of 3 years and the amount of $30,000. on 31 December 2002 the current portion of this loan should be $20,000 and $10,000 should be classified as a non-current asset ( other asset ).good luck
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