On 1 January 2021 A issued 50,000 GHS100 2% debentures to investors for GHS55 each....
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Accounting
On 1 January 2021 A issued 50,000 GHS100 2% debentures to investors for GHS55 each. The debentures are redeemable at their par value of GHS100 in 5 years time, 31 December 2025. The accountant has drafted the financial statements but has omitted to apply IAS 39.
The draft income statement and an extract from the balance sheet are as follows:
Income statement
2022
2021
GHS000 6,690 5,109
100 1,481 320 1,161
200
GHS000
GHS000 Revenue 7,830 Operating expenses 5,322
Interest payable 100 Profit before taxation 2,408 Taxation 521 Profit for the period 1,887 Dividends p aid 200 Statement of financial position (extract)
Payable: amounts falling due after 1 year
2% debenture
Required
Amend the draft accounts including comparatives to comply with IAS 39. The rate of interest implicit for the debentures is 15.62% per annum.
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