Reference no: EM132624788

REQUIRED

Question a. Show the following general ledger accounts in the books of Nomoolah for the financial year 1 March 20.4 to 28 February 20.5, properly balanced or closed off: theonsisdyhe . Interest expense . Expenses payable Long-term loan

Question b. Show extracts from the statement of profit or loss and other comprehensive income, statement of financial position and notes of Nomoolah which indicates how the interest and the loan will be disclosed in the financial statements for the year ended 28 February 20.5.

HOITAMBOTH INFORMATION Nomoolah borrows R375 000 on 1 December 20.0 from Merchant Bank. The loan is repayable in five equal, annual instalments, of which the first is payable on 30 November 20.2. Interest at a rate of 14% per annum on the outstanding capital amount is paid half-yearly in arrears on 31 May and 30 November. The interest rate is market related. A first mortgage bond over Nomoolah's land and buildings secures the long-term obligation. The carrying amount of land and buildings is R320 000 on 28 February 20.5.