A-LevelAccountingPreparation of financial statements9706/12 · Oct/Nov 2018 · Q121 Mark
A trader took out a 6% bank loan of $30000 on 1 November 2017, to be repaid in full in 10 years' time. Interest is to be paid annually. No interest had been paid by 30 April 2018. How should this be recorded in the statement of financial position at 30 April 2018?
Acurrent liabilities $0, non-current liabilities $30 000
Bcurrent liabilities $900, non-current liabilities $30 000
Ccurrent liabilities $1800, non-current liabilities $30 000
Dcurrent liabilities $30 900, non-current liabilities $0
✓ Correct answer
B: current liabilities $900, non-current liabilities $30 000
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