Cash & Treasury - AAT Test 2
GeorgiaH
Registered Posts: 107
Can anyone show me how to work out the long-term loan please?
The answer is Cr 1,134,000
Thanks
The answer is Cr 1,134,000
Thanks
0
Comments
-
@GeorgiaH
Total loan £1,260,000
Split thus:
Some of it will be repaid within the next year (Current liability of £126,000)
Note: I do not agree with the model answer for this part of the task of -£126,000 credit as this means that the liability is being reduced. to me, a liability is a positive figure just on the credit side. After all, you wouldn't debit the bank with +£126 and credit a loan with -£126 would you? I have asked for clarification on this.
The remainder will be repaid over the next 9 years (Non-current liability - Loan account - of £1,134,000
£126,000 + £1,134,000 = £1,260,000
Does this help?
MikeMichael JH Webster AATQB FMAAT0 -
As above:
Dr bank full amount £1,260,000
Cr current loan a/c £126,000 (10yr loan, £126kpa)
Cr L/T loan a/c £1,134.000
Interest is just there to throw you off in this particular question.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 323 NEW! Qualifications 2022
- 165 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 88 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership