Question 6 Comforts Lid granted 10,00,000 loan to its employees on January 1, 2009 at...
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Question 6 Comforts Lid granted 10,00,000 loan to its employees on January 1, 2009 at a concessional interest rate of 4% per annum. Loan is to be repaid in five equal annual instalments along with interest. Market rate of interest for such loan is 10% per annum. Following the principles of recognition and measurement as laid down in AS 30 Financial Instruments : Recognition and Measurement', record the entries for the year ended 31 December, 2009 for the loan transaction, and also calculate the value of loan initially to be recognised and amortised cost for all the subsequent years. The present value of 1 1 receivable at the end of each year based on discount factor of 10% can be taken as: Year end 1 0.9090 2 0.8263 0.7512 0.6829 0.6208
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