Question

Theory
True or False
a.
In case the due date of a bill falls after the date of closing the account, the
interest from the date of closing to such due date is known as Red-Ink interest​

Answer 1

Explanation:

In an Current Account, interest is calculated on the amount of a bill from the date of transaction to the closing date of the period concerned. In case the due date of the bill falls after the closing date of the account, then no interest is allowed for that period

Answer 2

The above-mentioned statement is TRUE.

• Bills that are due after the account has been closed are not subject to interest.
• On the appropriate side of the 'Account current,' the interest from the closure date to the due date is indicated in "Red-Ink."
• Red-Ink Fascination is the name given to this phenomenon. As a result, we regard Red-ink interest to be a negative factor at all times.