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Provisioning of quarterly compound certificates for auditing

Stat Audit 560 views 1 replies

Anirban Ghosh

Project Manager

24 Points Joined June 2012

Dear Forum Members,

I am really in doubt with Csh Certificates (Quarterly Compounding Certficates) provisioning. Our organisation an agricultural bank. We have invested an amount of 250000

on 27th Aug 2007 at the rate of 9% per annum, which will be matured on (as printed on the certificate) 27th Aug 2012.

We need to do the calculation of provisioning of the certificate for the auditing.

So what I have done.

I calculated 19 quarters upto 9th Feb, 2012 and calculated the sum as 610468.10 and calculated a flat interest of 9% on 610468.10 till 31st March for 51 days.

Now the confusion is, in case of the rest period. Should I calculate the quarter upto 8th Feb, 2012 and calculate the no of days till 31st March, 2012 as 52 days ?

Or what I have done is correct.

Pls help. Its urgent.

Replies (1)

N.Sivaraj

Manager _ F&A

93 Points Joined March 2009

first calulate int from 27th aug 2007 to 30th sep 2007 and subsequently calulate on qtrly basis.

While calculating the int for the next wtr add interest of previous qtr along with deposit amt . then u will get qtrly compounding effect till mar 2012.