Mr. A held on 1st January, 2017 1,00,000 of 31/2% Government loan at 95,000. Three months interest
Question:
Mr. A held on 1st January, 2017 ₹1,00,000 of 31/2% Government loan at ₹95,000. Three months interest had accrued. On 31st May he purchased a further ₹40,000 of the loan @ ₹96 (Net) cum-interest. On 31st July, ₹30,000 of the loan was sold at ₹94 (Net) ex-interest. On 30th November, ₹20,000 of the loan was sold at ₹96 (Net) cum-interest. Interest on the loan was paid each year on 31st March and 30th September and was collected on 4th April and 5th October. The price of the loan on 31st December 2017 was ₹96. Draw-up the Loan Account. Ignore income-tax and paise.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
To draw up the Loan Account for Mr As transactions involving the Government loan we need to record each transaction and calculate the accrued interest ...View the full answer
Answered By
Krishnavendra Y
I am a self motivated financial professional knowledgeable in; preparation of financial reports, reconciling and managing accounts, maintaining cash flows, budgets, among other financial reports. I possess strong analytical skills with high attention to detail and accuracy. I am able to act quickly and effectively when dealing with challenging situations. I have the ability to form positive relationships with colleagues and I believe that team work is great key to performance. I always deliver quality, detailed, original (0% plagiarism), well-researched and critically analyzed papers.
4+ Reviews
10+ Question Solved
Related Book For 
Financial Accounting Volume II
ISBN: 9789387886230
4th Edition
Authors: Mohamed Hanif, Amitabha Mukherjee
Question Posted:
