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sir how do i find this
at 30 june a company had $1m 8% loan notes in issue,interest being paid half yearly on 30 june and 31 december.
on 30 september 2002 the company redeemed 250000 of these loan notes at par paying interest due to that date
on 1 april 2003 the company issued 500000 7 % loan notes interest payable half yearly on 31 march and 30 september.
what figure should appear in the companys statement of profit or loss for interest payable in the year ended 30 june 2003
ans. 73750From 1 June 2002 to 30 September there is 4 months interest at 8% on $1M.
From 1 Sept 2002 to 30 June 2003 there is 8 months interest at 8% on $0.75M
From 1 April 2003 to 30 June 2003 there is 3 months interest at 7% on $0.5M
why is calculated from 1 june and 1 sept? im not getting the logic in this question.can u pls explain sir
Sorry – I wrote the dates wrongly in a hurry 🙁
It should be as follows:
From 1 July 2002 to 30 September 2002 there is 3 months interest at 8% on $1M.
From 1 October 2002 to 30 June 2003 there is 9 months interest at 8% on $0.75M
From 1 April 2003 to 30 June 2003 there is 3 months interest at 7% on $0.5M
Now it should make sense 🙂
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