Accounting 9706 · AS & A Level · Preparation of financial statements

Preparation of financial statements — practice question

On 1 November 2017, a trader arranged a bank loan for $30\,000 at 6%, with repayment in full due after 10 years. The interest is payable each year. By 30 April 2018, no interest had yet been paid. How should this be shown in the statement of financial position at 30 April 2018?

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