Amrinder, Mahinder and Joginder are partners in a firm. Mahinder retires from the firm. On his date of retirement, Rs. 60,000 becomes due to him. Amrinder and Joginder promise to pay him in instalments every year at the end of the year. Prepare Mahinder’s Loan Account in the following cases:
1. When payment is made four yearly instalments plus interest @ 12% p.a. on the unpaid balance.
2. When they agree to pay three yearly instalments of Rs. 20,000 including interest @ 12% p.a on the outstanding balance during the first three years and the balance including interest in the fourth year.
3. When payment is made in 4 equal yearly instalment’s including interest @ 12% p.a. on the unpaid balance.
Please answer this question and give me a sure shot method for doing the 3rd part of this question

Dear Student



1.
Mahinder's Loan A/c
Date Particulars Amount (in Rs) Date   Particulars Amount (in Rs)
           
Year1 Bank A/c 22,200   Mahinder's Capital A/c 60,000
           
  Bal C/d 45,000   Interest A/c 7,200
        (60000 x 12%)  
    67,200     67,200
           
           
Year 2 Bank A/c 20,400   Bal B/d 45,000
           
  Bal C/d 30,000   Interest A/c 5,400
        (45000 x 12%)  
    50,400     50,400
           
           
Year 3 Bank A/c 18,600   Bal B/d 30,000
           
  Bal C/d 15,000   Interest A/c 3,600
        (30000 x 12%)  
    33,600     33,600
           
           
Year 4 Bank A/c 16,800   Bal B/d 15,000
           
  Bal C/d 0   Interest A/c 1,800
        (15000 x 12%)  
    16,800     16,800


2.
Mahinder's Loan A/c
Date Particulars Amount (in Rs) Date   Particulars Amount (in Rs)
           
Year1 Bank A/c 20,000   Mahinder's Capital A/c 60,000
           
  Bal C/d 47,200   Interest A/c 7,200
        (60000 x 12%)  
    67,200     67,200
           
           
Year 2 Bank A/c 20,000   Bal B/d 47,200
           
  Bal C/d 32,864   Interest A/c 5,664
        (47200 x 12%)  
    52,864     52,864
           
           
Year 3 Bank A/c 20,000   Bal B/d 32,864
           
  Bal C/d 16,808   Interest A/c 3,944
        (32864 x 12%)  
    36,808     36,808
           
           
Year 4 Bank A/c 18,825   Bal B/d 16,808
           
  Bal C/d 0   Interest A/c 2,017
        (16807.68 x 12%)  
    18,825     18,825



3.
Formula to Calculate instalment : 
Amount Payable x rate1-(1+Rate)-no. of years = 60,000 x 12%1-(1+0.12)-4 = 7,2001-(11.12)4 = 19,754/-
Mahinder's Loan A/c
Date Particulars Amount (in Rs) Date   Particulars Amount (in Rs)
           
Year1 Bank A/c 19,754   Mahinder's Capital A/c 60,000
           
  Bal C/d 47,446   Interest A/c 7,200
        (60000 x 12%)  
    67,200     67,200
           
           
Year 2 Bank A/c 19,754   Bal B/d 47,446
           
  Bal C/d 33,386   Interest A/c 5,694
        (47446 x 12%)  
    53,140     53,140
           
           
Year 3 Bank A/c 19,754   Bal B/d 33,386
           
  Bal C/d 17,638   Interest A/c 4,006
        (33385.52 x 12%)  
    37,392     37,392
           
           
Year 4 Bank A/c 19,754   Bal B/d 17,638
           
  Bal C/d 0   Interest A/c 2,117
        (17637.7824 x 12%)  
    19,754     19,754



Regards

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