Prepare an amortisation schedule for a debenture liability, including initial carrying amount calculation.

Here is the completed amortisation schedule for Question 1(a): Q1(a) Amortisation Schedule The initial carrying amount of the debenture liability is calculated as the issue price less transaction costs. Nominal Value = N80,000; Issue Price = 90% of N80,000 = N72,000; Transaction Cost = N4,500; Initial Carrying Amount (1st Jan 20X1) = N72,000 − N4,500 = N67,500; Redemption Value (31st Dec 20X5) = Nominal Value + Premium = N80

Prepare an amortisation schedule for a debenture liability, including initial carrying amount calculation.

Here is the completed amortisation schedule for Question 1(a): Q1(a) Amortisation Schedule The initial carrying amount of the debenture liability is calculated as the issue price less transaction costs. Nominal Value = N80,000; Issue Price = 90% of N80,000 = N72,000; Transaction Cost = N4,500; Initial Carrying Amount (1st Jan 20X1) = N72,000 − N4,500 = N67,500; Redemption Value (31st Dec 20X5) = Nominal Value + Premium = N80

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Here is the completed amortisation schedule for Question 1(a):

Q1(a) Amortisation Schedule

The initial carrying amount of the debenture liability is calculated as the issue price less transaction costs.

Nominal Value = N80,000
Issue Price = 90% of N80,000 = N72,000
Transaction Cost = N4,500
Initial Carrying Amount (1st Jan 20X1) = N72,000 - N4,500 = N67,500
Redemption Value (31st Dec 20X5) = Nominal Value + Premium = N80

Prepare an amortisation schedule for a debenture liability, including initial carrying amount calculation.

Q1(a) Amortisation Schedule

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