The following transactions took place between Ram and Krishna from 1-1-09 to 30-6-09. 2009 Jan. 1 Sold goods to Ram Rs. 2,240 Jan. 10 Received Ram's acceptance at 2 months 1,000 Feb. 15 Received cash from Ram 1,200 Mar. 2 Bought goods from Ram 5,500 Mar. 3 Accepted Ram's bill at 1 month 2,000 Apr. 11 Paid cash to Ram 2,000 Apr. 30 Sold goods to Ram payable up to 31st May 2,400 May 11 Bought goods from Ram 1,500 May 31 Sold goods to Ram payable up to 10th June 2,200 June 15 Bought goods from Ram 3,000 Prepare the account current to be sent by Krishna on 30th June 2009. The rate of interest is 5%.
Answers
Answer:
the following transactions took place b etween ram aand
Answer:
The final account current to be sent by Krishna on 30th June 2009 will show the net amount owed by Ram to Krishna as -8106.66.
Explanation:
From the above question,
They have given :
The following is an account current prepared by Krishna on June 30th, 2009 for transactions with Ram from January 1st to June 30th, 2009. All amounts are in Indian Rupees.
Opening Balance
Krishna: 2,240
Ram: 0
Debits and Credits
January 1st - Sold goods to Ram: 2,240
January 10th - Received Ram's acceptance at 2 months: 1,000
February 15th - Received cash from Ram: 1,200
March 2nd - Bought goods from Ram: 5,500
March 3rd - Accepted Ram's bill at 1 month: 2,000
April 11th - Paid cash to Ram: 2,000
April 30th - Sold goods to Ram, payable up to May 31st: 2,400
May 11th - Bought goods from Ram: 1,500
May 31st - Sold goods to Ram, payable up to June 10th: 2,200
June 15th - Bought goods from Ram: 3,000
Closing Balance
Krishna: 2,540
Ram: 6,000
Interest owing to Krishna from Ram at 5%: 300
Total amount due from Ram to Krishna: 6,300
Add up the amounts owed by Ram to Krishna:
Ram's acceptance for 1000 due on 3/10: 1000 * 2/12 = 166.67
Cash received from Ram on 2/15: 1200
Ram's bill accepted on 3/3, due on 4/3: 2000 * 1/12 = 166.67
Sale of goods to Ram on 4/30, payable on 5/31: 2400
Sale of goods to Ram on 5/31, payable on 6/10: 2200
Total owed by Ram to Krishna: 1000 + 1200 + 166.67 + 2400 + 2200 + 166.67 = 6133.34
Add up the amounts owed by Krishna to Ram:
Goods sold to Ram on 1/1: 2240
Goods bought from Ram on 3/2: 5500
Cash paid to Ram on 4/11: 2000
Goods bought from Ram on 5/11: 1500
Goods bought from Ram on 6/15: 3000
Total owed by Krishna to Ram: 2240 + 5500 + 2000 + 1500 + 3000
= 14240
Calculate the net amount owed by Ram to Krishna:
Net amount owed = Total owed by Ram to Krishna - Total owed by Krishna to Ram
Net amount owed = 6133.34 - 14240
= -8106.66
Since the net amount owed by Ram to Krishna is negative, it means that Krishna owes Ram the amount of -8106.66.
We can also calculate the interest on the amount owed by Ram to Krishna at 5% for 6 months (from 1/1 to 6/30). The interest is calculated as:
Interest = Net amount owed * interest rate * time period
Interest = -8106.66 * 5/100 * 6/12
= -203.67
So, the final account current to be sent by Krishna on 30th June 2009 will show the net amount owed by Ram to Krishna as -8106.66 and the interest charged as -203.67, for a total of -8310.33.
This means that Krishna owes Ram a total of 8310.33, including the interest, on 30th June 2009.
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