Question

Borrowed Loan from Cosmos Bank Rs.3,00,000 on 1st November, 2019 @ 15 % p.a. Interest paid on 31st March, 2020 Rs.10,000. Calculate interest on bank loan payable for the year 2019-20 assuming financial year ends on 31st March, every year.​

Answer 1

18750

Explanation:

interst of 1 year - 45000

interests of 1 month - 45000÷12=3750

financial year ends on 31 St March

count the month From 1st November 2019 to 31st March 2020

total months = 5

calculation of interest on bank loan payable for the year 2019-2020

3750 × 5 = 18750