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.
2.
3.
Formula to Calculate instalment :
Regards
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