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Ken Garrett 3 months, 2 weeks ago.
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- July 27, 2019 at 11:38 am
A company acquired an item of plant under a lease on 1 April 20X7. The present value of the lease payments
was $15.6 million and the rentals are $6 million per annum paid in arrears for three years on 31 March each
year.
The interest rate implicit in the lease is 8% per annum.
What amount will appear under current liabilities in respect of this lease in the statement of financial position at
31 March 20X8? [Answers to nearest $’000]The answer
Initial liability 15,600
Interest 8% 1,248
Payment (6,000)
Balance 31.3.X8 10,848
Interest 8% 868
Payment (6,000)
Balance 31.3.X9 5,716Dear tutor,
My question is why the answer shows balance for 31.3.X9 while the requirement is for balance 31.3.X8?July 27, 2019 at 4:48 pmThis question is not relevant to this (AB) forum. Please repost appropriately.
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