Prepare Account Current for Nath Brothers in respect of the following transactions with Shyam:
2019
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September 16 Goods sold to Shyam
200 due 1st Oct.
October 1
Cash received from Shyam
90
October 21
Good purchased from Shyam
500 due 1st Dec.
November 1 Paid to Shyam
330
December 1 Paid to Shyam
330
December 5 Goods purchased from Shyam
500 due 1st Jan.
December 10 Goods purchased from Shyam
200 due 1st Jan.
2020
January 1
Paid to Shyam
600
January 9
Goods sold to Shyam
20 due 1st Feb.
The account is to be prepared upto 1st February. Calculate interest @ 6% per annum. (1 year = 365 days)
Answers
Answer:
it's very easy
Explanation:
jaise apn cash book bnate h na vaise hi bnegi
ismein interest option aur days option bnega amt vli row k sathagr na solve ho tu meko tag krke dubra dal dena main bta dungi
Answer:
The balance sheet is prepare with the given set of data
Explanation:
Given: Account Current for Nath Brothers in respect of the following transactions with Shyam
To find: Calculate interest @ 6% per annum. (1 year = 365 days)
Solution:
(1) While counting the number of days, the date of due date is ignored and the date upto which the account is prepared, is included.
(2) While counting the number of days, for opening balances, the opening date as well as date upto which the account is prepared, is counted.
Calculation of days:
Method 2: Preparation of Account Current by means of Products; Product Method
- When this method is followed, the way of preparing the Account Current remains the same. In this method is only the method of calculating interest is different.
- Under the previous method, interest columns are provided on both the sides of the Account Current, and interest in respect of each item is found out from the ready-made interest tables.
- In this method, interest columns are replaced by "product" columns. Product in this case is the amount multiplied by the number of days for which it has been outstanding. Interest on a certain sum of money for a certain number of days is the same thing as interest on the product for one day. In other words, with a view to reduce the period of each transaction to one day, the amount of each transaction is multiplied by the number of days. This product is entered against each transaction the product column.
The remaining steps are as follows:
(a) Find out the balance of the products on the two sides.
(b) Calculate interest at the given rate on the balance of the products for a single day.
(c) Enter interest on the appropriate side in the amount column. This entry is made on the side other than that on which the balance of products appears.
Taking Illustration 1 Account Current by means of Product is explained below:
