ANNEX C, CHAPTER 10 A-FN-105-001/AG-001 10C-1 LOAN FOR ...

ANNEX C, CHAPTER 10
A-FN-105-001/AG-001
LOAN FOR PROJECT CONTROLLED BY BASE
Sample Data:
Principal: $100,000
Interest: 4 %
Period: 5 years
Type: Bar Renovation
Borrower: Officers' Mess
1. Expenditure Incurred.
Work in Progress 25,000.00
Entity Share of CBA 25,000.00
2. Advance Received.
Entity share of CBA 25,000.00
Loan Payable CFCF (Long term) 25,000.00
3. Expenditure Incurred.
Work in Progress 75,000.00
Entity Share of CBA 75,000.00
4. Balance Received.
Entity Share of CBA 75,000.00
Loan Payable CFCF (Long term) 75,000.00
5. Project Completed (or facility put in use).
Fixed Asset (Class 14) 100,000.00
Work in Progress 100,000.00
Loan payable CFCF(long term) 18,104.00
Loan payable CFCF(current) 18,104.00
To set up current portion of CFCF loan (12 months x payments of $ 1,842.00) -
(100,000 x .04)
NOTE: The above entry assumes that payments begin the month following
project completion. If, for example, payments are delayed for six months after
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ANNEX C, CHAPTER 10
A-FN-105-001/AG-001
project completion, then the current portion of the payable would only include six
months of the monthly payments.
6. First Payment.
Loan Payable CFCF (note) 1,535.15
Loan Interest (note) 306.85
Entity Share of CBA 1,842.00
7. Second Payment.
Loan Payable CFCF 1,539.86
Loan Interest 302.14
Share of Region CBA 1,842.00
NOTE: For simplicity, the payment of the principal is debited to Loan payable
CFCF (long term) unless the loan will be fully repaid within the current fiscal year.
In this case, the payment of the principal is debited to loan payable CFCF
(Current).
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