Shamsa Limited has the following balances at 30 June 2019, the company's year end:
Trade and other payables: £47,450
Taxation payable: £17,275
Bank loan: £360,000
The bank loan is repayable over 5 years by equal monthly instalments. The first loan repayment is due on 28 August 2019 and each subsequent repayment will be on the 28^th of each month until the loan is repaid. What figures will Shamsa Limited show for current and non-current liabilities at 30 June 2019?

Question

Quizplus · Accepted Answer

Current liabilities include trade and other payables (£47,450), taxation payable (£17,275), and the portion of the bank loan due within one year. The annual repayment of the bank loan is £360,000 / 5 = £72,000. Therefore, current liabilities are £47,450 + £17,275 + £72,000 = £136,725. Non-current liabilities are the remaining bank loan balance: £360,000 - £72,000 = £288,000.

Shamsa Limited Has the Following Balances at 30 June 2019