(i) Match the columns below. Increase in liabilities DEBIT Sales Returned Discount on purchases CREDIT Prepayments...
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(i) Match the columns below. Increase in liabilities DEBIT Sales Returned Discount on purchases CREDIT Prepayments Advance Received (ii) Ms. Lila Rossi acquired a bank loan of Rs.5,000,000 form Miraculous Bank Ltd carrying interest rate @ 10.5% on January 01, 2017 repayable in 7 years form the date at instalments of Rs. 1,000,000. Bank manager has produced the following repayment schedule for Ms. LR. Date Loan at Interest Total Loan Instalment paid Closing Balance beginning Amount 31-12-2017 5,525,000 (1,000,000) 4,525,000 5,000,125 (1,000,000) 4,000, 125 4,420,138 (1,000,000) 3,420,138 5,000,000 525,000 31-12-2018 4,525,000 475,125 31-12-2019 4,000,125 420,013 31-12-2020 3,420,138 359,115 31-12-2021 2,779,253 291,822 31-12-2022 2,071,075 217,463 31-12-2023 1,288,538 135,297 1,423,835 3,779,253 (1,000,000) 2,779,253 3,071,075 (1,000,000) 2,071,075 2,288,538 (1,000,000) 1,288,538 (1,423,835) Required: a) Determine current liability (current maturity) at the end of 2019 that Ms. LR has to pay. (Journal Entry not required) b) Determine long term loan payable by Ms. LR at the end of 2019. (Journal Entry not required) (i) Match the columns below. Increase in liabilities DEBIT Sales Returned Discount on purchases CREDIT Prepayments Advance Received (ii) Ms. Lila Rossi acquired a bank loan of Rs.5,000,000 form Miraculous Bank Ltd carrying interest rate @ 10.5% on January 01, 2017 repayable in 7 years form the date at instalments of Rs. 1,000,000. Bank manager has produced the following repayment schedule for Ms. LR. Date Loan at Interest Total Loan Instalment paid Closing Balance beginning Amount 31-12-2017 5,525,000 (1,000,000) 4,525,000 5,000,125 (1,000,000) 4,000, 125 4,420,138 (1,000,000) 3,420,138 5,000,000 525,000 31-12-2018 4,525,000 475,125 31-12-2019 4,000,125 420,013 31-12-2020 3,420,138 359,115 31-12-2021 2,779,253 291,822 31-12-2022 2,071,075 217,463 31-12-2023 1,288,538 135,297 1,423,835 3,779,253 (1,000,000) 2,779,253 3,071,075 (1,000,000) 2,071,075 2,288,538 (1,000,000) 1,288,538 (1,423,835) Required: a) Determine current liability (current maturity) at the end of 2019 that Ms. LR has to pay. (Journal Entry not required) b) Determine long term loan payable by Ms. LR at the end of 2019. (Journal Entry not required)
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i ii Increase in liabilities CREDIT Sales Returned DEBIT Discount on purcha... View the full answer
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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