ABC Enterprises entered into a five-year lease agreement on 1 November 2020, paying £10,975 per annum, commencing on 31 October 2021. The present value of the lease payments was £45,000 and the interest rate implicit to the lease was 7% What is the amount to be shown within non-current liabilities at 31 October 2021? Show your calculations.
ABC Enterprises entered into a five-year lease agreement on 1 November 2020, paying £10,975 per annum, commencing on 31 October 2021. The present value of the lease payments was £45,000 and the interest rate implicit to the lease was 7% What is the amount to be shown within non-current liabilities at 31 October 2021? Show your calculations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Enterprises entered into a five-year lease agreement on 1 November 2020, paying
£10,975 per annum, commencing on 31 October 2021. The present value of the lease payments was £45,000 and the interest rate implicit to the lease was 7%
What is the amount to be shown within non-current liabilities at 31 October 2021? Show your calculations.
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