Pranava frequently uses his debit card for online shopping. In a month, he had an initial amount of $R s . 9, 800$ in a bank. He credited $R s . 11, 000$ to his account on $07 - 12 - 2011$ . He used his card for online shopping and an amount of $R s . 6, 125$ was debited from his account on the same day. He credited $R s . 3, 400$ on $19 - 12 - 2011$ by cheque no. $787865$ $. H e w i t h d r e w$ Rs. \ 4,800 $f o r s e l f v i d e c h e q u e n o .$ 123432 $o n$ 24-12-2011 $a n d a g a i n w i t h d r e w$ Rs.\ 750 $v i d e c h e q u e n o .$ 565677 $. E n t e r t h e s e p a r t i c u l a r s i n t o S B a c c o u n t a n d f i n d i n t e r e s t a t$ 4\%$ per annum on daily product basis.

Open in App

Solution

Date Particulars Cheque no. Debit Credit Balance
01-12-2011 Balance B/F 9800.00
07-12-2011 By cash
11000.00 20800.00
07-12-2011 To self 6125.00 14675.00
19-12-2011 By cheque 787865
3400.00 18075.00
24-12-2011 By cheque 123432,565677 5550.00 12525.00

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. $9800$ for $6$ days: $9800 \times 6 =$ Rs. $58, 800$ (because there was Rs. $9800$ from 1st to 7th)
Rs. $14675$ for $12$ days: $14675 \times 12 =$ Rs. $176, 100$
Rs. $18075$ for $5$ days: $18075 \times 5 =$ Rs. $90, 375$
Rs. $12525$ for $8$ days: $12525 \times 8 =$ Rs. $100, 200$
Adding these we get the product for the month. Thus product for the month $=$ Rs. $425, 475$ and T $= 1$ day $= 1 / 365$ years.
Interest for the month $= \frac{425, 475 \times 4}{100 \times 365} = 46.62$
Therefore the interest for the month is Rs. $47$ .

Suggest Corrections

Similar questions

Q. At the beginning of year 2011, a man had Rs 22,000 in his bank account. He saved some money by the end of this year and deposited it in the bank. The bank pays 10% per annum compound interest and at the end of 2012 he had Rs 39,820 in his bank account. Find what amount of money he had saved and deposited in his account at the end of year 2011.

On 1st April 2011, Rohan sold goods to Shyam for Rs. 30,000 on credit against his acceptance for 3 months. Rohan discounted the bill with his bank on 4th May 2011 @ 9% per annum. Find out the amount of discounting charges.

Trial balance of Kohli did not agree and showed an excess debit of Rs 16,300. He put the difference to a suspense account and discovered the following errors:

(a)	Cash received from Rajat Rs 5,000 was posted to the debit of Kamal as Rs 6,000.
(b)	Salaries paid to an employee Rs 2,000 were debited to his personal account as Rs 1,200.
(c)	Goods withdrawn by proprietor for personal use Rs 1,000 were credited to sales account as Rs 1,600.
(d)	Depreciation provided on machinery Rs 3,000 was posted to Machinery account as Rs 300.
(e)	Sale of old car for Rs 10,000 was credited to sales account as Rs 6,000. Rectify the errors and prepare suspense account.

John had a Savings Bank Account in a bank. In the months of April,

^{'} 97

and May,

^{'} 97

he had the following entries in his passbook.

Find the amounts on which John will get interest for the months of April,

2011

and May,

2011

Date	Particular	Withdrawals (In Rs.)	Deposits (In Rs.)	Balance (In Rs.)
April $1$	By Balance			$4, 600.00$
April $7$	By Cash		$1, 200.00$	$5, 800.00$
April $24$	To Cheque	$800.00$		$5, 000.00$
May $16$	By Cheque		$2, 000.00$	$7, 000.00$
May $29$	To Cash	$1, 500.00$		$5, 500.00$

Q. Vinod deposits Rs 700 every month in a recurring deposit account at the interest rate of 9

%

per annum for 12 months. What maturity amount he gets on his recurring deposit account.

Join BYJU'S Learning Program

Date	Particulars	Cheque no.	Debit	Credit	Balance
01-12-2011	Balance B/F				9800.00
07-12-2011	By cash			11000.00	20800.00
07-12-2011	To self		6125.00		14675.00
19-12-2011	By cheque	787865		3400.00	18075.00
24-12-2011	By cheque	123432,565677	5550.00		12525.00