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i hope qus is taken from financial instrument. Question 5 V ) Gasoline Lid has agreed to lend a custom Tk. 9,500 on 1 January
i hope qus is taken from financial instrument.
Question 5 V ) Gasoline Lid has agreed to lend a custom Tk. 9,500 on 1" January 2017 subject to the following terms: The loan will be repaid on 3?" Dezetibe: 201549 Pall" Three interest payments of T ICO are paid on 31" December each year. Gasoline Ltd incurred Tk. 250 of legal fees in agtering the loan documentation with the customer. The effective rate of interest on the lo a'is 9.485 Required: Demensterie iy journal entries how the loan should be recorded the financial statements of Gasoline 'td for the year ended 31 December 2017 and subsequent years. (b) BBQ Ltd issued one million 5% Convertible Debenture 1 January 2015 at par value of Tk. 100 each. The Debenture can be converted after completion of 4 year. The rate of interest on similar types of Debenture without conversio 1 option is 8% Required: i) Calculate Liability components and Equit/components of the convertible debeniture and provide initial journal entries at issued date ii) Show the effect of the Debenture on Statement of Financial Position and Statement of Profit or Loss on 31" December of each yev from 2015 to 2018 iii) Provide the Journal Entries after end of year assuming that the Debenture were not converted IMarks: 6+9=151Step by Step Solution
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