Question

Hari owes Ram Rs.2,000 on 1st April, 1996. From 1st April, 1996 to 30th June, 1996 the following further transactions took place between Hari and Ram: April 10 Hari buys goods from Ram for Rs.5,000. May 16 Hari receives cash loan of Rs. 10,000 from Ram. June 9 Hari buys goods from Ram for Rs. 3,000. Hari pays the whole amount, together with interest @ 15% per annum, to Ram on 30th June, 1996. Calculate the interest payable on 30th June, 1996 by the Average due-date method.​

Answer 1

Answer:

10×10×10÷100

Explanation:

find the intrest

Answer 2

Answer:

Interest payable on 30th June, 1996 by Hari to Ram on the basis of Average due-date method will amount to Rs.451

Explanation:

Concept of Average due-date method:

Average due date is the weighted average date of distinct due dates pertaining to multiple transactions due between the same parties. Average due date is useful when items of same nature taking place between same parties are to be depicted by a single date for the ease of interest calculation and settlement.

Average due date= Base date+ Sum of product/Sum of amount

Here,

Base date= 1st April, 1996
Sum of product= 702000
Sum of amount= 20000
(Refer the picture for proper understanding)

⇒ $1.4.1996$$+$$\frac{702000}{20000}$
= $1.4.1996+35 days$
= 6th May, 1996

If total amount was paid on 6th May i.e.,  the Average due date, no interest would have been charged.
∵ The amount is paid on 30th June, 1996 i.e., with a delay of 55 days (1st April,1996-30th June,1996) , thus interest will be charged accordingly.

∴ Interest payable by Hari to Ram
= $20000$×$\frac{15}{100}$×$\frac{55}{366}$
= Rs.451

Note: It has been assumed that 1996 is a leap year, thus 366 days have been considered.

(Refer the attached files for a proper understanding)