Question

1. If the cash equivalent of perpetuity of Rs.325 per month is Rs. 26,000,
find the rate of interest converted monthly.
(a) 12%
(b) 13%
(c) 14% (d) none of these
A company borrowe De​

Answer 1

Answer:

12. Birla life Ltd., was incorporated on August 1,2015 to take over the business

of camlinLtd.,as a going concern from 1" April 2015. The profit and loss a/c

for the year ending on 31" March 2016 is as follows:

The Birla Life Ltd.

Dr. Income

Statement for the year ended 31" March 2016

Cr

Particulars

Amount Particulars

Amount

To Rent and Taxes

24000 By gross profit

310000

To Insurance

6000

To Electricity charges 4800

To salaries

72000

To Director's fees

6200

To auditors fees

3000

To commission

12000

To advertisement

8000

To discount

7000

To Office Expenses

15000

To carriage

6000

To Bank charges

3000

13000

Explanation:

1. If the cash equivalent of perpetuity of Rs.325 per month is Rs. 26,000,

find the rate of interest converted monthly.

(a) 12%

(b) 13%

(c) 14% (d) none of these

A company borrowe De

Answer 2

Explanation:

we know

Present value of perpetuity=P/I

I=r/100 then present value of perpetuity=P×100/r

so given present value of perpetuity=26000

and p is 325×12=3900

26000=3900×100/r

r=390000/26000

r=15% so option d is correct