Forums
Back
Answers (21)
Madhuri Veluri
Current account is nothing but the Savings bank passbook account.
Mam will u please explain the fourth transaction of second problem
Thread Starter
Poojitha JanaMam will u please explain the fourth transaction of second problem
It means that Mr.X has drawn a bill on Mr.A for the amount due payable in a month and Mr.A accepted the same.
Thread Starter
Poojitha JanaI tried but not getting the ans of this problem
Please post your solution. Will let you know if there is any mistake.
Thread Starter
Poojitha JanaUpper part is debit and lower part is credit sir If I tally both sides I am not getting the correct ans
The answer given in the material is incorrect. Please refer the solution attached.
Thread Starter
Poojitha JanaMam I kindly request u to refer the question
Please be clear with your query
Mr.A accepted the bill drawn by Mr.X for one month ,this transaction was made on march13 then the due date will be April13and entry is bills receivable debit to Mr.A A/c ,So will record it on the credit side ,as we get negative days , according to the red ink interest under product method, will bring it to the debit side and will record it as march15 finally now we calculate the no.of days from March 15 to April 13 then the days will get r 29 , as we know we multiple the days (29)with the amount (2000) then will get 58000
Thread Starter
Poojitha JanaMr.A accepted the bill drawn by Mr.X for one month ,this transaction was made on march13 then the due date will be April13and entry is bills receivable debit to Mr.A A/c ,So will record it on the credit side ,as we get negative days , according to the red ink interest under product method, will bring it to the debit side and will record it as march15 finally now we calculate the no.of days from March 15 to April 13 then the days will get r 29 , as we know we multiple the days (29)with the amount (2000) then will get 58000
Agreed. But the last line of the question says that they are going to settle their "complete accounts on 15th March in a single payment". It concludes that even the bill due for 1 month will also be cleared on 15th March itself. If it just given that the accounts are settled excluding bill or if the words "single payment" are not given we can go to the red ink interest. So, we consider the time between the bill date that is 13th March to the final settlement date that is 15th March for calculation of interest.
Thread Starter
Poojitha JanaMam, Then it will not satisfy the ans which is given in the material
I already mentioned that the material answer is wrong. Please refer the answer given.
Madhuri Veluri
I already mentioned that the material answer is wrong. Please refer the answer given.
If you consider the red ink interest the answer by you is correct but if you consider the last line of the question you do not consider red ink interest. Please do write an assumption about whatever your consideration is in the examination.
Thread Starter
Poojitha JanaMam , will the JCAJ mention the method which is to be followed, in the question
Depends on the examiner mood. Whatever confusing question it is please given your assumptions in the solution. Thank you.
Your Reply