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Sir, i confused about determining current portion of non current loan..For example If year end 30 September 2009 and we have loan notes 100000 as trial balance (repayable in 4 equal annual instalments starting 1st January 2010) How can we calculate current portion of loan..A)100000:4=25000(12 months-from 1 January to 30 September) or B)100000:4:12×9=6250(9 months-from 1 January to 30 December)
Which one is correct?
Is it depends on when this loan notes are issued? For example if loan notes are issued 30 September 2009 alternative B is correct? Thanks in advance 🙂They are paying 25,000 on 1 January 2010. This is within 12 months of 30 September 2009 and therefore 25,000 is a current liability. The remaining payments will be made more than 12 months later and so are a non-current liability.
It depends on the date of the payments – not when they relate to.
(Your post should be headed up ‘non-current liabilities’ 🙂 )
Sorry sir, i didnt pay attention to the heading 🙂
So 12months period includes from 1 Oct 2009 to 30 Sept 2010, just payment take place on January 1st 2010, yes?
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