A-LevelAccountingAccruals and PrepaymentsOct/Nov 2022Paper 1 Q101 Mark
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?
Acurrent liabilities $: 0; non-current liabilities $: 30000
Bcurrent liabilities $: 900; non-current liabilities $: 30000
Ccurrent liabilities $: 1800; non-current liabilities $: 30000
Dcurrent liabilities $: 30900; non-current liabilities $: 0
✓ Correct Answer
The correct answer is B. This question tests the candidate's understanding of accruals and prepayments within the Accountingsyllabus. The examiner's mark scheme requires...
📋 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...
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