Question
On 1 January 2019, a company buys RM50,000 of 7% loan stock for RM47,865. Interest is received on 31 December each year and the stock
On 1 January 2019, a company buys RM50,000 of 7% loan stock for RM47,865. Interest is received on 31 December each year and the stock will be redeemed at a premium of 10% on 31 December 2022. The effective interest rate is 10.5% per annum. Calculate the amortised cost of the loan stock at 31 December 2019.
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Financial Accounting And Reporting
Authors: Barry Elliott, Jamie Elliott
3rd Edition
0139488944, 978-0139488948
