ACCA F3 Mock Exam Financial Statement
At 31 December 2005 the following require inclusion in a company’s financial statements:
(1) On 1 January 2005 the company made a loan of $10,000 to an employee, repayable on 1 January 2006,
charging interest at 2 per cent per year. On the due date she repaid the loan and paid the whole of the interest
due on the loan to that date.
(2) The company has paid insurance $27,000 in 2005, covering the year ending 31 August 2006.
(3) In January 2006 the company received rent from a tenant $6,000 covering the six months to 31 December 2005.
For these items, what total figures should be included in the company’s balance sheet (Current Asset and Current Liability ) at 31 December 2005?
ACCA F3 Mock Exam Financial Statement
Suggested Solution.
Current Asset will be:
Loan + Accrued Interest + prepaid insurance
=10,000 + 200 + 18,000
=$ 28,200
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