O-LevelAccountingPreparation of financial statements7707/11 · Oct/Nov 2011 · Q201 Mark
On 1 January 2010, Zafar borrowed $10 000. He agreed to repay the loan by annual instalments of $1000 starting on 1 January 2011. How will the loan be shown in Zafar's balance sheet at 31 December 2010?
A$1000 as a current asset and $9000 as a non-current liability
B$1000 as a current liability and $9000 as a non-current liability
C$9000 as a current asset and $1000 as a current liability
D$10 000 as a current liability
✓ Correct answer
B: $1000 as a current liability and $9000 as a non-current liability
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