Date 29-07-2018 09-09-2018 Sarin Amount (Rs.) 92,000 11,500 Show Ramesh's A/c in the books of the firm. Interest is to be calculated at 10% on debit balance and 8% on credit balance. You are required to prepare current account as on 30th September, 2018 by means of product of balances method. Ramesh’s Current Account with Partnership firm (as on 30.9.2018) Te ew ees eee iran had accepted bills payable to Heena, falling due on different dates. The details of bills areas follows: Date Particulars Dr. Cr.| Balance | Dror | Days | Dr. Product cr cr. Product (Rs) (Rs) (Rs) (Rs) (Rs) 1.07.18 | ToBalb/d 35,000 $5,000] _ Dr, cry 11,05,000 1407.18 | By Cash A/c 1,23,000| 38,000} Cr. 15 5,70,000 2907.18 | ToSelf 92,000 54,000] Dr. 20 18.08.18 | By Cash A/c 21,000] 33,000] Dr. 2 09.09.18 | ToSelf 11,500 44500 Dr. 2 30.09.18 | To Interest A/c O41 30.09.18 | By Bal. c/d asa] 4544] Dr. 994m [159441 38,90,000 | 5,70,000 Interest Calculation: On Rs. 38,90,000 x 10% x 1/365 = 1,066 On Rs. 5,70,000 x 8% «1/365 = Rs.125 Net interest to be debited = Rs.941 Date of bill Amount Usance of bill 9th April 2018 Rs. 3,000 for 4 months 18th April 2018 Rs. 5,500 for 3 months 25th May 2018 Rs. 3,000 for 6 months 5th June 2018 Rs, 6,000 for3 months On 1st July, it was agreed that these bills should be withdrawn and that Kiran should accept on that day two bills, one for Rs. 10,000 due in 4 months and the other for the balance with interest, due in 6 months. Calculate the amount of the second bill taking interest @ 10% p.a, Take 365 days in year 2018-2019, Calculation of Average Due Date Taking Base Date 21.07.2018 Date of bill Period Due Date Amount] Number of Days from Product Base Date Rs. Rs. 94.2018 4months — | 12.08.2018 3,000 22 66,000 184.2018 3 months — | 21.07.2018 5,500 0 0 255.2018 6months | 28.11.2018 3,000 130 3,90,000 5.6.2018 3months | 8.09.2018 6,000 49 94,000 17,500 7,50,000 7,50,000 Average Due Date = 21+ July + Since two new bills will be drawn, their due dates will be as follows: 7 2L7.2018 + 43 days = 2.09.2018 Accounting for Special Transactions oO