How interest will be calculated

alpha manufacturing p ltd is to supply good on credit of two month to the partnership firm.The partnership is to discharge the due to alpha manufacturing p ltd along with interest at 12% per annum regularly on due dates.

purchases150 lakhs of which30 were in the first quarter;90 lakhs were in the next six month; the balance30 lakh were in the last quarter. The purchase are evenly spread though the respective periods.??

answer is 2.80 interest

how this interest will be calculated ??plz help me to know this

Replies (9)

hai nikil assume dat purchases r made in d middle of d year.  due date for purchases is for 2 months. amount relating to purchases made in d month of feb&march r paid in next month. purchases evenly spread means for first quarter ,ie, apr may june

apr=10    may=10   june=10    

q2    july=15    aug=15    sept=15   oct=15   nov=15   dec=15

q3    jan=10  feb=10 mar=-10

interst for 130 laks= 130*12%*2/12 = 2.6

interst for 10 laks on feb=10*12%*1.5/12 =0.15

interst for 10 laks on march=10*12%*.5/12 =0.05

for the months feb interest should be calculated as 10*12/100*1.5/12 = 0.15 and


for the month of march interest should be calculated as 10*12/100*0.5/12 = 0.05


so total interest for the months of feb and march is 0.15+0.05 = 0.2

and the remaining amount that is 150-20 = 130

here 20 comes from  10 + 10  ----> which is for the month of feb and march

and the interest for 130 for 2 months credit is as folows :

130*2/12*12/100  = 2.6

and total interest is  0.2+2.6 = 2.8

 

hope you will clarified


corrections are most encouraged !

thanks

 

Thankz guys for solving my query .......these solution really helped me...:-)

any other doubts ask me it helps me alot to enich my knowledge

Ofcourse i will share my doubts....thanz one again

i agree with mounika

i also agree

also agree

Agreed...............................................................

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