inciple
w On 1st February, 2020, a loan of 1,00,000 was given to Parth @ 12% pa. Interest
was received for 3 months from February to April, 2020. In the financial statements
for the year ended 31st March, 2020, amount of advance interest should be
(b) * 1,000.
(d) 4,800.
(a) 1.200
(c) 3,600
Answers
The correct answer is option (c) 3,600.
Explanation:
Given: A loan of 1,00,000 was given to Parth @ 12% pa.
To Calculate: The amount of advance interest
Calculate:
- Interest on loan= 1,00,000 × 12/100
- So, Interest on loan = 1,200
- It is received for 3 months (from February to April)
- So, the Total interest of 3 months = 1,200 × 3
- Thus, Total interest of 3 months = 3,600
- Hence, the correct answer is option (c).
- Therefore, The amount of advance interest should be 3,600.
Answer:
the correct answer is option (b).
Explanation:
Given: A loan of 1,00,000 was given to Parth @ 12% pa.
To Calculate: The amount of advance interest
Calculate:
• Interest on loan= 1,00,000 × 12/100
• So, Interest on loan = 1,2000
• It is received for 3 months (from February to April)
• So, the Total interest of 3 months = 1,2000 × 3/12
• Thus, Total interest of 3 months = 3,000
• Since the year ends on 31st March, 2022, Advance interest received for 1 month
• Therefore, Advance interest is for one month i.e. for april
• Advance interest = 3000/3= 1000
• Hence, the correct answer is option (b).