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Hi Im currently studying Senior Bookkeeping - Financial statements, (Part-Time) and have run into a question i cant answer.
The Textbook doesnt seem to have any examples regarding it either. The question i have is taken from a Sample Assessment similar to the one
i will receive in my examination. So i need to understand how they came to the solution, i have approached 2 accountants and a lecturer, unfortunately they couldnt help me either. so here i am....
Question:
Provide for the Interest on the Mortgage Loan. Interest is calculated at 12% per Annum. The liability was repaid (redeemed) by
R50 000 on 1 June 2006. There we no additional loans or repayments during the financial year. But twelve end-of month instalments of R1650
each are due to be repaid on the loan starting at the end of February 2007.
Additional Info.
The Mortgage loan: R180000
(It doesnt say when the loan was initiated but Land & Buildings is R187500).
Under the Proposed Solution
General Journal
Incrued Expense R23 600
My Question is how did they come to that solution?
Please help!!!!
The Textbook doesnt seem to have any examples regarding it either. The question i have is taken from a Sample Assessment similar to the one
i will receive in my examination. So i need to understand how they came to the solution, i have approached 2 accountants and a lecturer, unfortunately they couldnt help me either. so here i am....
Question:
Provide for the Interest on the Mortgage Loan. Interest is calculated at 12% per Annum. The liability was repaid (redeemed) by
R50 000 on 1 June 2006. There we no additional loans or repayments during the financial year. But twelve end-of month instalments of R1650
each are due to be repaid on the loan starting at the end of February 2007.
Additional Info.
The Mortgage loan: R180000
(It doesnt say when the loan was initiated but Land & Buildings is R187500).
Under the Proposed Solution
General Journal
Incrued Expense R23 600
My Question is how did they come to that solution?
Please help!!!!
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