Sohail Trading Corporation was operating for the last several years. Currently the Company decided to borrow...

 

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Sohail Trading Corporation was operating for the last several years. Currently the Company decided to borrow Rs. 1,000,000 from its bank as on 01 July, 2020 for a period of 04 years at interest rate of 15% per annum payable annually along with installment of principal amount of loan in equal proportions. In this respect four promissory notes were issued for equal amounts payable at the end of each year commencing on 30 June 2021. Required a) b) Record the borrow of money from the bank against Promissory Notes. Prepare a Schedule of amortization of loan and interest thereon for 04 years to discharge liability in equal proportions. c) Record accounting entries for payment of Notes Payable comprising principal installment of loan and interest thereon for whole of the loan period. Present the liability of loan in the balance sheet as at 30 June 2021 after discharge of its first installment. d) Sohail Trading Corporation was operating for the last several years. Currently the Company decided to borrow Rs. 1,000,000 from its bank as on 01 July, 2020 for a period of 04 years at interest rate of 15% per annum payable annually along with installment of principal amount of loan in equal proportions. In this respect four promissory notes were issued for equal amounts payable at the end of each year commencing on 30 June 2021. Required a) b) Record the borrow of money from the bank against Promissory Notes. Prepare a Schedule of amortization of loan and interest thereon for 04 years to discharge liability in equal proportions. c) Record accounting entries for payment of Notes Payable comprising principal installment of loan and interest thereon for whole of the loan period. Present the liability of loan in the balance sheet as at 30 June 2021 after discharge of its first installment. d)

Answer rating: 100% (QA)

Answer a Record the borrow of money from the bank against Promissory Notes On 01 July 2020 Sohail Trading Corporation borrows Rs 1000000 from its bank ... View the full answer