Question

Q6)Define the term red ink interest and also state how many methods are there to prepare account

current along with the names?​

Answer 1

Answer:

Red – Ink Interest: If the due date of a bill is after the date of closing the account, then we charge no interest for that. However, we write the interest from the date of closing to the due date in “Red-Ink” in the relevant side of the 'Account current'. This interest is known as Red-Ink interest.