ACCOUNT CURRENT
This query is : Resolved
18 March 2011
IN THE CHAPTER ACCOUNT CURRENT
A OWED Rs 3,000 ON 1st JANUARY TO Mr C.THE FOLLOWING TRANSACTIONS THAT TOOK PLACE B/W THEM DURING 2008.IT IS AGREED B/W PARTIES THAT INTEREST @ 12% p.a IS CALCULATED ON ALL TRANSACTIONS
2008
JAN 16 Mr C SOLD GOODS TO A Rs 2000
JAN 29 Mr C PURCHASED GOODS FROM A. Rs 1500
FEB 10 Mr C PAYS CASH Rs 1500
MARCH 9 Mr A ACCEPTS A BILL DRAWN BY C FOR 1 MONTH Rs 2000
THEY DESIRE TO SETTLE THEIR A/C BY 1 SINGLE PAYMENT ON 15th MARCH 2008.ASCERTAIN THE AMOUNT TO BE PAID.
A OWED Rs 3,000 ON 1st JANUARY TO Mr C.THE FOLLOWING TRANSACTIONS THAT TOOK PLACE B/W THEM DURING 2008.IT IS AGREED B/W PARTIES THAT INTEREST @ 12% p.a IS CALCULATED ON ALL TRANSACTIONS
2008
JAN 16 Mr C SOLD GOODS TO A Rs 2000
JAN 29 Mr C PURCHASED GOODS FROM A. Rs 1500
FEB 10 Mr C PAYS CASH Rs 1500
MARCH 9 Mr A ACCEPTS A BILL DRAWN BY C FOR 1 MONTH Rs 2000
THEY DESIRE TO SETTLE THEIR A/C BY 1 SINGLE PAYMENT ON 15th MARCH 2008.ASCERTAIN THE AMOUNT TO BE PAID.
20 March 2011
PLEASE HELP ME.
14 July 2024
To ascertain the amount to be paid by A to C on 15th March 2008, we need to calculate the interest on the transactions between them and then settle the account accordingly. Here's the step-by-step calculation:
### Transactions and Interest Calculation:
1. **Initial Amount Owed**:
- A owed Rs. 3,000 to C from 1st January 2008.
2. **Transactions and Dates**:
- Jan 16: C sold goods to A for Rs. 2,000.
- Jan 29: C purchased goods from A for Rs. 1,500.
- Feb 10: C paid cash Rs. 1,500.
- Mar 9: A accepted a bill drawn by C for 1 month for Rs. 2,000.
3. **Interest Calculation**:
- Interest is calculated at 12% per annum.
### Step-by-Step Calculation:
1. **Calculate Interest for Each Transaction**:
- From 1st January to 15th March, the interest period is approximately 2.5 months (assuming interest is calculated monthly).
- Interest on Rs. 3,000 for 2.5 months:
\[
\text{Interest} = \frac{3,000 \times 12\%}{12} \times 2.5 = Rs. 75
\]
2. **Calculate Interest on Transactions**:
- Jan 16: A owes C Rs. 2,000 for 1.5 months (approx):
\[
\text{Interest} = \frac{2,000 \times 12\%}{12} \times 1.5 = Rs. 30
\]
- Jan 29: C owes A Rs. 1,500 for 1 month:
\[
\text{Interest} = \frac{1,500 \times 12\%}{12} \times 1 = Rs. 15
\]
- Feb 10: C paid A Rs. 1,500. No interest on this payment.
- Mar 9: A accepts bill drawn by C for Rs. 2,000 for 1 month:
\[
\text{Interest} = \frac{2,000 \times 12\%}{12} \times 1 = Rs. 20
\]
3. **Total Interest Calculation**:
- Total interest accrued from 1st January to 15th March:
\[
75 + 30 + 15 + 20 = Rs. 140
\]
4. **Calculate Total Amount Payable by A to C**:
- Initial amount owed by A: Rs. 3,000
- Total amount due including interest: Rs. 3,000 + Rs. 140 = Rs. 3,140
Therefore, on 15th March 2008, A needs to pay Rs. 3,140 to C to settle their account, considering all transactions and interest calculations up to that date. This amount includes the initial amount owed plus interest calculated at 12% per annum on all transactions between them.
### Transactions and Interest Calculation:
1. **Initial Amount Owed**:
- A owed Rs. 3,000 to C from 1st January 2008.
2. **Transactions and Dates**:
- Jan 16: C sold goods to A for Rs. 2,000.
- Jan 29: C purchased goods from A for Rs. 1,500.
- Feb 10: C paid cash Rs. 1,500.
- Mar 9: A accepted a bill drawn by C for 1 month for Rs. 2,000.
3. **Interest Calculation**:
- Interest is calculated at 12% per annum.
### Step-by-Step Calculation:
1. **Calculate Interest for Each Transaction**:
- From 1st January to 15th March, the interest period is approximately 2.5 months (assuming interest is calculated monthly).
- Interest on Rs. 3,000 for 2.5 months:
\[
\text{Interest} = \frac{3,000 \times 12\%}{12} \times 2.5 = Rs. 75
\]
2. **Calculate Interest on Transactions**:
- Jan 16: A owes C Rs. 2,000 for 1.5 months (approx):
\[
\text{Interest} = \frac{2,000 \times 12\%}{12} \times 1.5 = Rs. 30
\]
- Jan 29: C owes A Rs. 1,500 for 1 month:
\[
\text{Interest} = \frac{1,500 \times 12\%}{12} \times 1 = Rs. 15
\]
- Feb 10: C paid A Rs. 1,500. No interest on this payment.
- Mar 9: A accepts bill drawn by C for Rs. 2,000 for 1 month:
\[
\text{Interest} = \frac{2,000 \times 12\%}{12} \times 1 = Rs. 20
\]
3. **Total Interest Calculation**:
- Total interest accrued from 1st January to 15th March:
\[
75 + 30 + 15 + 20 = Rs. 140
\]
4. **Calculate Total Amount Payable by A to C**:
- Initial amount owed by A: Rs. 3,000
- Total amount due including interest: Rs. 3,000 + Rs. 140 = Rs. 3,140
Therefore, on 15th March 2008, A needs to pay Rs. 3,140 to C to settle their account, considering all transactions and interest calculations up to that date. This amount includes the initial amount owed plus interest calculated at 12% per annum on all transactions between them.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Reporting Income under Section 44ADA
- Showing Gift from relative in ITR for this year
- ITR returnFY25-26
- ITR 2 Short Term gain & Long term gain
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
