Business Transactions Solutions

A company has applied for a bank loan on February 04, 2009. It was approved on March 03 of the same year, but the proceeds of such loan were credited to the company's bank account only on may 01. the loan was payable in four equal annual installments of 500,000 starting June 01,2010. It also incurs interest at half of 1% every month (based on the total principal) starting may 01, 2009. The interest is payable at the same time as the annual installments  The company's operations are based on a calendar year.

1. If the financial statements were to be prepared for the year 2009, what amount would appear as interest expense in the entity's statements of income and expenses?

2. Using the information in no.1 what would appear as non-current portion of the loan payable account for a statement of financial position prepared as of December 31, 2009?

Following questions are not related to above statement.

3. A company had total assets of 1,500,000 as of January 01, 2010. For the year 2010, its liabilities have increase by 400,000, its owner invested an additional 100,000 and withdrew 50,000 and it had a net loss at 230,000. As of December 31, 2010, it must have had total assets equal to?

4. A company's statement of changes in owner's equity showed a beginning balance of 250,000, an additional investments of 30,000, a withdrawal of 40,000, and an ending balance of 225,000. The company's results of operations for the year must have been?

Miko De Leon From Philippines

Miko De Leon, I am trying to solve your accounting questions one by one.

1.Financial year had not been mentioned in this question. So, suppose, company closes its accounts on the end of 31st Dec. 2009. So, if half of  1% interest is of end of every month. 8  month interest will be outstanding and will be shown in the expenses side of income and expense statement.

Total Loan = 5,00,000 X 4 = 20,00,000

8 Months Interest Outstanding = 20,00,000 X 0.5% X 8 =  80,000

2. We show 15,00,000 as non current liability and 5,00,000 as Current liability in the balance sheet of a company.

3.  Ans. 17,20,000

Given total assets = total liabilities

+New investment = +fresh capital increase

-Cash decrease with Withdraw = -Decrease in Capital

- Assets Decreased due to Net Loss = - Decrease in Capital due to loss

4. Net Loss = 15000

Beginning of Capital +Fresh Capital - Drawing - Ending balance of Capital






11th Class Physics 6th Class Science accounting Accounting Concepts Accounting Course Accounting Education accounting equation Accounting Formats Accounting Solutions Accounting Videos in Hindi Algebra Answer the Questions and Become Master Applied sciences B.Com Maths Balance Sheet bank Banking Bodybuilding Education Budget Business Business Education Business Environment Business Mathematics Business Solutions CA Calculus cameras Canara Bank car Car Driving Course Career Solutions carpentry Cattle Domestication Skill Cattle Domestication Skill chemistry Class 10 Maths Class 5 Maths Class 8 Maths Class 9 Maths Communication Computer Computer Basics Computer Hardware Computer Networking Computer Software Computer Solutions Construction Skills cooking education Corporate Accounting Corporate Law cost cost accounting Credit Card CSE Dailymotion DEMAT Account depreciation determinant drawing Driving Education e-accounting earn money Earning Economics Education Education Education Solutions Electrical Skills Electronics Email Energy (physics) Engineering Events Examination Failure Finance Finance Education Finance Solutions financial Financial Accounting FIR Focus on Study Football Forex Forex Trading Skills Fundraiser Gambling Gambling Addiction Goldsmith Google Adsense GST Guest Writers Gurpreet Singh HDFC Bank Health Education Help History Home Building Home Maintenance amp; Repair Home Remedies Course Index Number India India Post Payments Bank Indian Language Infolinks Inspiration insurance internal audit International Finance Internet Internet Forum Investment Jobs amp; Careers Journal journal entries journal entry Kenya Laptop Basics Law Education Law Solutions Learning Lecture Legal Education Linear algebra Linear Programming Malaysia Management Accounting Management Education Management Solutions Marketing Education Mathematics Education matrices MCAT Medical and Surgery Education Mobile motivation MS Excel Music Skills Nepal Net Banking Nigeria Online Online Teachers Support organisation Other Pakistan paypal paytm Personal Finance Philippines Photography Photoshop Software Picture Plumbing Education Post Office Probability Profiles Profit provision Quiz real estate rectification rectification of errors Relationships amp; Family Religious Studies Result Sahas Saudi Arabia Saving SBI School Accounting Science Education Secrets of Failure Self Identity Self-Learning Share Market Share Market Dictionary Singing Skills Skating Slideshow Solution Spiritual Education Sports Statistics Statistics Education stock Story Success svtuition Tablet Education Tailoring Skills Tally Tally Solutions Tally.ERP 9 tax Tax Solutions teaching Teaching Education Tech Simplify technical education Test Testimonials Travel Trigonometry tuition TV Shows UK USA variance analysis VAT vector Video Video on Demand videos Vocational Education Wealth Web design website Welding Skills Wife Window Movie Maker Wordpress working capital Yono App Yono Cash Youth youtube zigopay
Svtuition: Business Transactions Solutions
Business Transactions Solutions
Not found any lecture VIEW ALL Learn More Reply Cancel reply Delete By Home PAGES Lectures View All RECOMMENDED FOR YOU Category ARCHIVE SEARCH ALL Lectures Not found any lecture match with your request, please help to write it and send it to our email at for making this website free accounting and finance encyclopedia. Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock