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Statement of cash flow

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Statement of cash flow

  • This topic has 1 reply, 2 voices, and was last updated 2 weeks ago by John Moffat.
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    Posts
  • March 2, 2023 at 5:29 am #679915
    snehamaharja
    Participant
    • Topics: 14
    • Replies: 3
    • ☆

    Total equity

    Non-current liabilities 8% Loan notes
    $000
    30 June 20X7 = 10000
    30 June 20X6. 8000

    Additional information:
    The additional loan notes were issued on 1 January 20X7. All interest due was paid on 31December 20X6 and 30 June 20X7
    .

    Sir , I try to do it . but I can’t get that
    In book how they did it like this
    Interest Payables 8% x 1/2(8000-10000) = 720
    Please help with this question
    Can you solve this question and explain me ??

    March 2, 2023 at 8:40 am #679953
    John Moffat
    Keymaster
    • Topics: 56
    • Replies: 51874
    • ☆☆☆☆☆

    From 1 July 20X6 to 31 December 20X6 the loan notes were 8,000 and so the interest for this 6 months is 1/2 x 8% x 8,000.

    On 1 January 20X7 they issued 2,000 more loan notes and the total went up to 10,000. So the interest for the 6 months from 1 January 20X7 to 30 June 20X7 is 1/2 x 8% x 10,000.

    The total interest for the year is the two added together.

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