Accounting Multiple Choice Question – 3 February 2023

A company has issued a debenture loan carrying interest at the rate of 8 % payable every 31 December.

Also, each 31 December £20 000 of the debenture is redeemed.

At 31 December 2015 the total debenture loan outstanding was £100 000.

Which amounts should be disclosed in the company’s published Statement Of Financial Position at 31 December 2016?

Select ONE answer:

1. accrued interest £NIL / current liabilities £20,000 / long term loan £60,000
2. accrued interest £NIL / current liabilities £20,000 / long term loan £80,000
3. accrued interest £6,400 / current liabilities £NIL / long term loan £80,000
4. accrued interest £8,000 / current liabilities £20,000 / long term loan £80,000

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct
2. Not correct
3. Not correct
4. Not correct

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