Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Illustration 22: Issue of borrowings with fixed rate of interest A Ltd has made a borrowing from RBC Bank for 10,000 at a fixed interest

image text in transcribed

Illustration 22: Issue of borrowings with fixed rate of interest A Ltd has made a borrowing from RBC Bank for 10,000 at a fixed interest of 12% per annum. Loan processing fees were additionally paid for 500 and loan is payable 4 half-yearly installments of 2,500 each. Details are as follows: Particulars Details Loan amount 10,000 Date of loan (Starting Date) 1-Apr-20X1 Date of loan (Finishing Date) 31-March-20X3 Description of repayment Repayment of loan starts from 30-Sept-20X1 (To be paid half yearly) Installment amount 2,500 Interest rate 12.00% Interest charge Interest to be charged quarterly Upfront fees 500 How would loan be accounted in books of A Ltd

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Effective Use Of Teams For IT Audits

Authors: Martin Krist

1st Edition

0849398282, 978-0849398285

More Books

Students also viewed these Accounting questions