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SFM-leases doubt

(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

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12 Replies

(Guest)

What the question??

4 Like

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(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

2 Like

(Guest)

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

Ankur Jalan (Article Assistant ) (345 Points)
Replied 08 September 2018

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

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(Guest)

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

Ankur Jalan (Article Assistant ) (345 Points)
Replied 08 September 2018

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

3 Like

(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)
Replied 08 September 2018

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...