help, question! (1 Viewer)

[know_it_all]

sori
can ne1 help
i understand the bop n all that stuff
but im rite in saying loans...n the interest repaid on those loans are calculated in diff account, "other" and "net income" respectively

so if they ask an interest on loan q, i put it in net income on the current
but how wud they ask a qu just wanting the loan to be put in the fin account?

thanks!...if u can understand wat im asking ie

 

[know_it_all]

wud an eg of what im asking be:
Westpac lends a foreign business funds to expand into Asia
so thats recorded as a debit on the 'other' part of the fin account?

 

[azza_3761]

Im fairly sure that wat u r saying is correct.

 

[HayleeKate]

You're perfectly correct.
When someone lends money or capital or whatever, its an investment, hence goes in the financial account, no worries.
The interest or dividends from that investment, are the income from the investment, not the actual investment itself, so, they go on current account, net income, no problems, you've got it right.

 

[know_it_all]

sori bout all the qs, its jst my teacher argh
n theres only so much u can understand for the txtbook

last q...
a french super firm invests some funds into aus stocks
we;re sposed to take these kinda qs for face value rite, so that wud b a credit on the fin account

cos if u were to read into it, ud think bout the outflow of interest, but we dw bout that
hope thats rite

thanks so much

 

[HayleeKate]

sori bout all the qs, its jst my teacher argh
n theres only so much u can understand for the txtbook

last q...
a french super firm invests some funds into aus stocks
we;re sposed to take these kinda qs for face value rite, so that wud b a credit on the fin account

cos if u were to read into it, ud think bout the outflow of interest, but we dw bout that
hope thats rite

thanks so much

Yeah, dont get too deep, that type of question is a one marker, dont get carried away, its really simple, you're right, just trying to make it harder than it is.