# 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 :
 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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