Question

Question

Answer 1

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2015
Aug.01	Interest on Calls-in-Advance A/c	Dr.		30
	To Sundry Members A/c				30
	(Interest on calls-in-advance credited to sundry members)
Aug.01	Sundry Members A/c	Dr.		30
	To Bank A/c				30
	(Paid interest on calls-in-advance)

Working Notes: Calculation of interest on calls-in-advance

$\mathrm{Interest}=1,000\times \frac{12}{100}\times \frac{3}{12}=\mathrm{Rs}30$