Npo

Value of investment =interest/rate of investment. 4550/7%=65000..

Sajeetha R

CA Final

★ 46K+

11-May-22 13:22

Full interest is received. if 7% = 4550, then 100% = ? [Do a cross multiplication] You will get 65,000 Amount in income and expenditure = 65,000 x 7%

CA Suraj Lakhotia

Admin

11-May-22 14:48

Sir but I did wrong like I thought interest is received equally for 2 years and used simple interest formula

Thread Starter

Sugam SM

CA Final

★ 9K+

11-May-22 14:51

And I wrote in Income and expenditure account it as 2275 as I thought it accrued in current year

Thread Starter

Sugam SM

CA Final

★ 9K+

11-May-22 14:53

If it was for 2 years, the question would mention that.

CA Suraj Lakhotia

Admin

11-May-22 14:56

Sir what if we write assumption and do as balance sheet still tally

Thread Starter

Sugam SM

CA Final

★ 9K+

11-May-22 15:07

But that is not an appropriate assumption.

CA Suraj Lakhotia

Admin

12-May-22 16:29