Question

Kruthi opens SB account in a bank on $04-06-2010$ with an initial deposit of $Rs.1,500$. She credits $Rs.4,000$ to her account on $09-06-2010$. She receives a banker cheque in her name for $Rs.10,200$ on her name and she deposits it to her account on $20-06-2010$. She issues a cheque (no. $2290898$) for her brother for $Rs.4,500$ on $21-06-2010$. She deposits $Rs.2,500$ on $24-06-2010$ and withdraws $Rs.1,000$ on $30-06-2010$. Enter thee into SB account pass book and find the interest at $4\%$ per annum she gets for the month on daily product basis.

Answer 1

Date	Particulars	Cheque no.	Debit	Credit	Balance
04-06-2010	Balance B/F				1500.00
09-06-2010	By cash			4000.00	5500.00
20-06-2010	By cheque			10200.00	15700.00
21-06-2010	By cheque	2290898	4500.00		11200.00
24-06-2010	By cash			2500.00	13700.00
30-06-2010	To self		1000.00		12700.00

To calculate the interest on daily product basis, we have to consider the balance at the end of each day and find interest for those days. We can do this by calculating the daily product for the month and finding the interest at the given rate for one day. We do this as follows:
Rs. $1500$ for $5$ days: $1500\times 5=$ Rs. $7,500$ (because there were Rs. $1500$ from 4th to 9th)
Rs. $5500$ for $11$ days: $5500\times 11=$ Rs. $60,500$
Rs. $15700$ for $1$ days: $15,700\times 1=$ Rs. $15,700$
Rs. $11200$ for $3$ days: $11200\times 3=$ Rs. $33,600$
Rs. $13700$ for $6$ days: $13700\times 6=$ Rs. $82,200$

Rs. $12700$ for $4$ days: $12700\times 4=$ Rs. $50,800$
Adding these we get the product for the month. Thus product for the month $=$ Rs. $250,300$ and T $=1$ day $=1/365$ years.
Interest for the month $=\frac{250300\times 4}{100\times 365}=27.43$
Therefore the interest for the month is Rs. $27$.