A trader took out a 6% bank loan of $30000 on 1 November 2021, to be repaid in full in 10 years' time. Interest is to be paid annually. No interest had been paid by 30 April 2022. How should this be recorded in the statement of financial position at 30 April 2022?
✓ Correct Answer
The correct answer is B: current liabilities $: 900; non-current liabilities $: 30000
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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