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SFM-leases doubt

197 views 12 replies

Guest

Practice manual Chapter -3 Leases Q-5 pg 3.8 &
Q- 23 pg 3.38 ..
why both of these questions have been solved by considering 'Interest inclusive of installment' ??? If somebody can explain

Replies (12)

Guest

What the question??

Guest

it's too long so I gave page no question no.. my query is with method of solving

Guest

I don't have PM so can you please post ur questions

Guest

is their any way to send attachment or image here??

Ankur Jalan

Article Assistant

345 Points Joined December 2012

is question 5 starts with XYZ ltd ...and Question 23 with Alfa ltd....?

Guest

yes q-5 xyz Ltd n q-23 Alfa Ltd ..

Ankur Jalan

Article Assistant

345 Points Joined December 2012

if that is the case , to calculate annual installment we take numerator the total loan amt and then divide it by the PVAF for the loan amount period, after calculating the annual installment we bifurcate the principal and intt in next step ..

Guest

Thanks a lot for responding Mr Jalan

Guest

sir but y we have to use PVAF method? .. in next q-6 its solved with simple method i.e principal plus interest ..

Ankur Jalan

Article Assistant

345 Points Joined December 2012

because in that question, the question specifically mentions that annual payment is 200000 plus intt. the question where you are having doubt , we have to calculate the installment first using pvaf method and then u separate intt amt to proceed further...