10

Account Current

P.1. Siva in Account Current with Ram as on 31st Oct, 2019

Dr. Cr.
Date Particulars Amt Days Product Date Particulars Amt Days Product
To Bal. b/d 750 123 92,250 20.08.19 By S.Ret 200 72 14,400
01.07.19
To Sales 1250 77 96,250 22.09.19 By Bank 800 39 31,200
15.08.19
To Interest 18.48 By Cash 500 16 8,000
15.10.19
31.10.19 By Balance of Products 1,34,900

31.10.19 By Bal C/d 518.48

2018.48 1,88,500 2018.48 1,88,500

Interest = 1,34,900 x 5% x 1/365 = 18.48

P.2. Mr. Paul in Account Current with Mr. Singh

(Interest to 31st August, 2020 @ 10% p.a.)

Date Particulars Due Amount Days Product Date Particulars Due Amount Days Product
2020 Date ₹ 2020 Date ₹
June 11 To Sales A/c June 11 1,020 81 82,620 June 15 By Cash A/c By June 15 500 77 38,500
June 20 To Sales A/c June 20 650 72 46,800 Aug.8 Cash A/c By Aug.8 1,100 23 25,300
To Sales A/c Aug.31 Balance of
July 7 July 7 700 55 38,500 1,04,120
product
To Interest A/c Balance c/d
Aug.31 28.53 Aug. 31 798.53

1,04,120 x 10
365 100

To Balance b/d
2,398.53 1,67,920 2,398.53 1,67,920
Sept. 798.53

P.3. B in Account Current with A

(Interest from Due Date to Dec.31, 2017 @ 10% p.a.)

Dr. Cr.
Due Amount Due Amount
Date Particulars Days Product Date Particulars Days Product
Date (₹) Date (₹)
July 1 To Balance b/d July 1 600 184 1,10,400 Aug. 1 By Cash A/c Aug. 1 650 152 98,800

July 17 To Sales A/c July 17 50 167 8,350 Sept. 1 By Cash A/c Sept. 1 350 121 42,350
 ACCOUNT CURRENT | 2

Aug. To Sales A/c Aug 19 700 134 93,800 Sept. 1 By Bills Dec. 4 250 27 6,750
19 Receivable
Aug.30 To Sales A/c Aug. 30 40 123 4,920 Oct. By Purchases Oct. 22 30 70 2,100
22 A/c
Nov.12 To Sales A/c Nov. 12 20 49 980 Dec. By Cash A/c Dec. 14 80 17 1,360
14
Dec.31 To Interest Dec. By Balance c/d 68.38 67,090
A/c 31
₹ (67,090 18.38
X 0.1 / 365)
1428.38 2,18,450 1428.38 2,18,450

P.4. Mr. A in Account Current with Mr. X

(Interest upto 15th March, 2020)

Dr. Cr.
Date Particulars Amt Days Product Date Particulars Amt Days Product
2020 2020
Jan. 01 To Balance b/d 4,000 75 3,00,000 Jan. 29 By Purchase a/c 1,200 46 55,200
Jan. 15 To Sales a/c 2,230 60 1,33,800 Feb. 10 By Cash a/c 1,000 34 34,000
Mar. 13 To Red Ink product 58,000 Mar. 13 By Bills 2,000
(₹ 2,000 @ 29) receivable a/c
Mar. 15 To Interest a/c 110 Mar. 15 By Balance of 4,02,600
₹4,02,600 x 10% x product
1/ 366
By Balance c/d 2,140
(amt to be paid)
6,340 4,91,800 6,340 4,91,800

P.5. B in Account Current with A (Interest to 31st June 2020, @ 6% p.a.)

Date Particulars Amount Days Products Date Particulars Amount Days Products
2020 ₹ 2020 ₹
Jan.1 To Balance b/d 600 182 1,09,200 Jan.18 By Sales Returns By 125 164 20,500
Jan. 11 To Sales A/c 520 171 88,920 Feb. 11 Bank A/c 400 140 56,000
Apr. 29 To Sales A/c To 615 62 38,130 Feb. 14 By B/R A/c (due date: 300 105 31,500
June 30 Interest A/c 15.75 March 17)

May 15 By Cash A/c By 700 46 32,200

June Balance of 96,050
30 products
By Balance c/d 225.75
1,750.75 2,36,250 1,750.75 2,36,250

Interest = 96,050 x 6% x 1/366 = 15.75

P.6. In the books of Mr. Perfact

Mr. Smart in Account Current with Mr. Perfact

(Interest to 31st March, 2019 @ 12% p.a.)

CA ZUBAIR KHAN
 ACCOUNT CURRENT | 3

Due Day Due

Date Particulars Amt Product Date Particulars Amt Days Product
date s date
2019 2019
Jan 12 To Sales A/c Feb 1 30,000 58 17,40,000 Jan 1 By Balance Jan 1 3,500 90 3,15,000
b/d
Jan 31 To Sales A/c Feb 15 27,500 44 12,10,000 Feb 15 By Cash a/c Feb 15 40,000 44 17,60,000
Mar 31 To Interest 130 Feb 20 By Cash a/c Feb 20 7,500 39 2,92,500
3,96,500/365
12 x 100
Mar 10 By Sales Mar 10 7,000 21 1,47,000
returns
Mar 31 To Balance 6,870 Mar 25 By Cash a/c Mar 25 6,500 6 39,000
c/d
Mar 31 By Balance of 3,96,500
products
64,500 29,50,000 64,500 29,50,000

P.7. Bhuvanesh in Account Current with Avinash

For the period ending on 31st March 2018

Date Particulars Amount Days Products Date Particulars Amount Days Products
2018 ₹ 2018 ₹
Jan.1 To Balance b/d 1,800 90* 1,62,000 Jan.15 By Sales Returns 650 75 48,750

Jan. 10 To Sales A/c 1,500 80 1,20,000 Feb. 12 By Bank A/c 1,000 47 47,000

Mar, 11 To Sales A/c 720 20 14,400 Feb. 20 By B/R A/c (due date: March 1,500 8 12,000
Mar, 31 To Interest A/c 24 23)
March, By Cash A/c 800 17 13,600
14
March, By Balance of products 1,75,050
31
By Balance c/d 94

4,044 2,96,400 4,044 2,96,400

*Calculation of interest
Interest = (1,75,050 x 5%)/365= ₹ 24

P.8. XY in Account Current with AB as on 31st Oct, 2018

(₹) Days Product (₹) Days Product

(₹) (₹)
01.07.18 To Bal. b/d 1,500 123 1,84,500 28.08.18 By Sales Returns 400 64 25,600

20.8.18 To Sales 2,500 72 1,80,000 25.09.18 By Bank 1,600 36 57,600

31.10.18 To Interest 37 20.10.18 By Cash 1,000 11 11,000

CA ZUBAIR KHAN
 ACCOUNT CURRENT | 4

20.10.18 By Balance of Products 2,70,300

31.10.18 By Bal. c/d 1,037

4,037 3,64,500 4,037 3,64,500

P.9. Mr. Sunil in Account Current with Mr. Raju

For the period ending on 31st October, 2020

Date Particulars Amount Days Products Date Particulars Amount Days Products
2020 ₹ 2020 ₹
July1 To Balance b/d 840 123 1,03,320 Aug. 20 By Sales Returns 240 72 17,280
Aug 15 To Sales A/c 1,310 77 1,00,870 Sept. 22 By Bank A/c 830 39 32,370
Oct. 31 To Interest A/c 47.73
Oct. 15 By Cash A/c 560 16 8,960

Oct .31 By Balance of products 1,45,580

Oct.31 By Balance c/d 567.73

2,197.73 2,04,190 2,197.73 2,04,190

Calculation of interest:
Interest = 1,45,580/366 x 12% = ₹47.73
Note: Year 2020 is a leap year; hence 366 days are taken for interest calculation. On the
assumption of 365 days interest will be as below:-
Interest = 1,45,580/355 x 12% = ₹47.86 (or) ₹48.

P.10. Piyush in Account Current with Amit

For the period ending on 31st December, 2020

Date Particulars Amount Days Products Date Particulars Amount Days Products
2020 ₹ 2020 ₹

Sept. 1 To Balance b/d 900 122 1,09,800 Oct. 20 By Sales Returns 250 72 18,000
Oct. 15 To Sales A/c 1,450 77 1,11,650 Nov. 22 By Bank A/c 1,200 39 46,800
Dec. 31 To Interest A/c 32 Dec. 15 By Cash A/c 600 16 9,600
Dec. 31 By Balance of 1,47,050
products
By Balance c/d 332

2,382 2,21,450 2,382 2,21,450

Calculation of interest:
Interest = 1,47,050/ 366 days X 8% = ₹ 32 (Rounded off)
Note: 366 days taken for interest calculation since 2020 is a leap year.

CA ZUBAIR KHAN
 ACCOUNT CURRENT | 5

P.11. Vinod Current Account with Allahabad Bank Ltd.

Date Particular Dr. Cr. Dr. or Balance Days Dr. Product Cr. Product
Cr.

2020
Jan. 2 By Cash Account - 30,000 Cr. 30,000 13 - 3,90,000
Jan. 15 By Cash Account - 12,000 Cr. 42,000 31 - 13,02,000
Feb. 15 To Self 26,000 - Cr. 16,000 25 - 4,00,000
Mar. 12 By Cash Account - 8,000 Cr. 24,000 29 - 6,96,000
April 10 To Self 30,000 - Dr. 6,000 30 1,80,000 -
May 10 By Cash Account - 16,000 Cr. 10,000 36 - 3,60,000
June 15 To Self 14,000 - Dr. 4,000 15 60,000 -
June 30 By Interest A/c - 140 Dr. 3,860 - -
June 30 By Balance c/d 3,860 -
70,000 70,000 2,40,000 31,48,000

July 1 To Balance b/d 3,860

* Interest is calculated as follows:

On ₹ 31,48,000 @ 2% for 1 day = ₹ 172.49

On ₹ 2,40,000 @ 5% for 1 day = ₹ 32.88

Net Interest = ₹ 139.61 (₹ 172.49- ₹ 32.88)

CA ZUBAIR KHAN