(B) ACCOUNT CURRENT

1. ACCoUNT CURRENT
1.1. Definition
Account current is a statement in debit and credit form recording the
transactions between two periods in chronological order. In fact the account current
is the copy of the account appearing in the books of sender with the additional
column for intereet. It is usually sent by one merchant to another or by the
agent to his principal or by the banker to his client. The name of the party to
whom the account current is sent appears first, then comes the phrase "....
. in
account current with..." and then appears the name of the sender. Therefore,
if the heading is "Ram in account current with Shyam", it means Ram is the
receiver and Shyam is the sender. Account current represents the account of
the person whose name appears first and transaction will be recorded solely
from this point of view.
For example, ifX sells goods to Yworth Rs. 8,000
316 Average Due Date and Account Current
 current heading and recording ot
a pays N Rs. 3.O00 then account
transaction wil be as follows
N
YIN ACcOUNT CURRENTWIT Ra 3,000
ToSaless Rs 8,000 y Cash
books oI A)
(t is the account of Y as it appears in the
WITH Y
NIN ACCOUNTCURREVT
Rs 3,000| By P'uichases Ra.8,000
To Cash
in the books of )
( t i s the account of Xas it appears
It can be concluded as follows:
a Receiver's name appears tirst
(b Sender's name appears in the last.
whose name
Account curent is the copy of the account of the party
appears in the last
These statements are mostly used in the following cases

( Between suppliers and customers.

( Principal and his agent.
( Broker and his client.
(u Consignee and consignor.
( Lender and borrower.
branch.
(uHead office and its
(vi Bank and customer.
s (in joint ventures).
(vii Between c o - v e n t u r e rcurrent is as under:
Proforma of an account
XIN ACCOUNT CURRENT WITH Y
(Interest to 31st March at 20% p.a.).
Cr
Dr. Date Particulars| Amount| Days |Product
Date Particulars Amount | Days Product (Rs.)
(Rs.)
2. CALCULATION OF INTEREST
interest for account current
There are three methods of calculating
purposes. These are
1. Forward method,
and
2. Product method,
balance method.
3. Periodical
These three methods
are explained as under
2.1. Forvard Method calculated
is
is.taken.separately. Interest
Under this method, each item af the transaction
the.number of days fromthe date
for each item by counting if interest charged is more
of settlement. The interest is debitedj is m o r e than
to the date and credited if interest receivable
interest receivable since interest
than the This method is, however, cumberspme
the interest charged.
separately. The following illustration 'will
to be calculated for each item
has
make this method clear X owes Y Rs. 20,000
I l l u s t r a t l o n 19. On
1st October 2002,
cash Rs. 6,000
2002, X payp
On 1st D e c e m b e r from Y Ra12,000
On lst January,
2003, X purchases goods
Ra. 18,000
2003, X pay cash
On 1st February, onding 31lat March 2003,
by Y to X for the half year
Prepare Account current rendered
interest at 15% annum, per
calculating

Average
Due Date and
Acount Current 17
 Solution. X IN ACcoUNT CURRENT WITH
Dr. (Interest to 31st March 2003 at 15% p.a.)
?
Date Particulars Months Interest
Amount| Date Particulars Cr.
Rs. Months hterest Prochuct
2002 Rs. Rs. Rs.
2002
Oct. 1 To Bal. b/d 6 1,500 20,000 Dec. 1
2003 By Cash 300 6,000
2003
Jan. 1 To Sales 450 12,000 Feb.1 By Cash 450 18,000
Mar.31 To Interest By Bal.
-contra 1,200 of interest| 1,200
-contra
Mar.31 By Bal. c/d 9,200
1,950 33,200 1,950 33,200
2003
April 1 To Balance
b/d 9,200
2.2. Product method-Calculation of interest by the use of products
This is a modification of the above method. Interest in this case will be
calculated for one day on the product of amount and days, for one month on the
product of amount and months, for one year on the product of amount and years
as the case may be. In calculating days, the date of transaction is ignored. But
if it is the date of the previous balance brought forward from the
previous period,
theopening date must be included. The products so obtained must be recorded
in the products column and balance of products is found out in the normal way.
Interest is calculated on the balance ofthe products and the interest is entered
in the amount column on the side which has the larger of the total products. After
this, the account is balanced and it is carried forward to the next accounting period.
Illustration 20. From the following information, prepare account current on 30th
September, 2002 to be submitted by M to F:
2002 Rs.
July Debit balance b/f 13,500
Sold goods to F 9,000
15 Received cash from F 13,500
August Sold goods to F 19,200
16 Received cash from F 9,000
September Bought goods from F 21,000
2 Paid cash to F 7,500
12 Sold goods to F 9,600
15 Paid cash to F 6,000
Interest is to be taken into account @ 10% per annum; it may be calculated to the nearest
rupee. (Madras B:Com. Oct. 2000 Adapted)9
Solution. Books.of M
iiiPINACCOUNT CURRENT WITH M
Date Particulars Amount| Days Product Date Particulars AmountDas Product
2002 4 2002 Rs.
1
July To Balance 13,500 92 12,42,000 July 15
July 5 To Sales By Cash 13,50077 |10,39,500
Aug. 41 Tó Sales
9.090 87 7,83,p00 Aug. 16 By Cash 9,000 45 4,05.000
19,200 57 10,94,400| Sept. 1|'By Purchases 21,000 29 6,09,000
Sept. 2 To Cash 7,500 28 2,10,000| Sept. 3 By Balance
Sept 12 To Sales 9,600 18 1,72,8000 c/d
21,722 15,38,700b
Sept 15 To Cash 6,000 15 90,000
Sept. 3 To
Interest 422*
65222
Oct. 1 To Bal. b/d2T
35,92,20 65,222 35,92,200
22| 15,38,7o0
Interest 10/100 1/365 * Rs. 15,38,700 Rs. 422.

318
AveraggDue Date and Account Current
Note Days have been calculated as follows
July 1 July 31 Aug. 31 Sept. 30 -92 days.
July 5 - 87 days.
July 26 Aug. 31 Sept. 30
- 57 days.
Aug. 4 Aug. 27 Sept. 30
Sept. 2 Sept. 28 28 days.
Sept. 12 Sept. 18 1 8 days.
Sept. 15S Sept. 15 15 days.
July 15 July 16* Aug. 31 Sept. 30 -77days.
45 days.
Aug. 16 Aug. 15 Sept. 30 - 29 days.
Sept. 1 Sept. 29
Interest is calculated by the use of formula
Balance of products Rate of interest
365 100
Illastration 21. Krishnan had the following transaction with Gopal from 1st January
to 30th June.
2003
Rs.
Opening balance due from Gopal 500
Jan. 1
Sold goods to Gopal 1,000
Feb. 4
Purchased goods from Gopal 300
March 15
April 20 Received acceptance from Gopal for the bil1 dated
month after date 400
April 15 payable one
May 15 Paid cash to Gopal 300
Make up an account current to be rendered by Krishnan to Gopal on June 30, 2003,
calculating interest at 10% p.a. (Madras B.Com. May 2000 Adapted)
Solution. Gopal in Account Current with Krishnan ar on 30.6.2003

Date Particulars Rs. Days to Product Date Particulars Rs. Days to Produt
2003 30.6.2003 2003 30.6.2003

Jan. 1 To Balance b/d 500 181 90,500 Mar 15 By Purchase 300 107 32,100
Feb. 4 To Sales 1,000 146 1,46,000 Apr 20 By B/R 400 43 17,200
Due date:
May 15 To Cash 300 46 13,800 May 18)
To Interest S5 By Balance c/d 1,156
1,855 2,50,300 1,855 9,300
1
Interest on debit side product amount 2.50.30006x65 68.57

Interest on credit side product amount - 49,300 x 365 13.51

Net 55.06 (or) Rs. 55
Note. ( In calculating days, the date of transaction is ignored. In case of opening balance,
opening date should be included.
e.g. Jan. 1 31 + 28 3130+ 31 30 181 days8.
Feb. 4
24+31 30 31 + 30 146 days.
2003 is not a leap year, hence February has 28 daya only.
F o r Bills, 3 days of grace are added to calculate due date e.g. April 15-one month
- Due date May 15 3 Grace days - May 18.
luetration 22. From the following prepare an account current aa aet by Ariun to Bhola
on 30th June 2002 charging interest on debits @ 6% and on credits 4% per áñnum:
2002 Rs.
Jan.: Balance due from Bhola 600
Jan 10 Sold goods to Bhola 520
Jan. 17 Bhola returned goods 125
Feb. 10 Bhola paid by cheque 400
Feb. 14 Bhola accepted Arun's draft for one month 300
Apr. 29 Goods sold to Bhola 615
May 15 Received cash from Bhola 700
June 5 Bhola accepted Arun's bilI for 3 months 500
(Bharthiar B.Com. April 2000 Adapted; Madras B.Com. May 1999 Adaptecd

Average Due Date and Account Current 19

 Solution. BHOLA IN ACccoUNT cURRENT WITH ARUN
Date Particulars AS ON 30-6-2002
Amount Days to
2002 Product Date Particulars Amount Days to Product
306.20002 2002
Jan. 1 To 30.6.2002
Balance b/d 600 181
Jan 10 To Salrs 1,08,600 Jan. 17
520 171 By Sales Return 125 164 20,500
Apr. 29 To Sales 88,920 Feb. 10 By Bank
6115 62 400 140 56,000
June 30 To interest 38,130 Feb. 14 By B/R (Due date
27
To Balance c/d Mar. 17) 300
263 105 31,500
May 15 By Cash 700 46 32.200
June 5 By B/R (Due date:
Total
2,025
8-9-2002) 500 -70 -35,000
2,35,650 25
2.04 1,05,200
Interest on debit side 6
product total 2.35,650 x 100 38.74
365
Interest on credit side product total
1,05,200x 0100
Net
E 11.53

27.21 or 27
Note. If Due day falls
beyond 30-6-2002, then, it is taken as minus
30-6-2002 it is taken as (-70 (H) days. Therefore,
5.
B/R due date is 8-9-2002, i.e., beyond June
2.2.1. Red ink interest. Sometimes days viz. 31+31 + 8).
due date of the transaction falls
beyond the settlement date, i.e., the date on which account current is prepared.
In such a case, days are counted from
the settlement date to the transactioon
date and put in the days column with
with ( sign. This is called Red ink interest() sign. The product of this is also marked
red ink. By because in books it is written in
writing such transactions in red ink sufficient warning is
to the accountant that
product of that transaction is to be deducted from givena
sum of the the
product. Sometimes, to avoid risk, it is written on the opposite side.
lustration 23. The following are
the transactions that took place between X and Y
during the period from lst January to 30th June, 2003
( Balance due to X by Yas at 1st January Rs.
(i Goods sold by X to Y on 17th January 602
(tin Goods sold by X to Yon 16th 884
invoice dated 1st April)
Februaryy
(iv) Gooda returned by X to Yon 18th February 1,296
(out of goods purchased on 16th February)
(v Goods sold by Y to X on 24th March 112
(invoice dated 1st May)
(v Bill drawn by Yon Xat 3 712
months accepted
by the latter on 22nd April
(vi Cash paid by X to Yon 29th April 300
(vii Goods sold by X to Y on 17th May 500
invoice dated 1st June)
(i Goods sold by Y to X on 22nd June 542
(invoice dated 1st August)
456
Draw up an account current upto 30Oth June, 2003 to be rendered by X to Y charging
interest at 15% per annum.
BolutioB.
(C.S. Foundation, June 1998.Adapted
Books of X
IN ACcoUNT
CURRENT wITHX
Date Due Patic Days Product Amount Date Due Partic Days Product Amount
Date ulars to (Rs.) Date ulars to
30th (Rs.
30th
June
June
2003 2003
Jan. Jan To 181 ,08,962 602 Feb. 16 Apr.1
Balance b/d 1,16,640 1,2961
Jan To Sales 164 1,44,976 884 March May1
Purchase
By
Jan
17 17 24 Purchaaee 60 42,720 712

320 Average Due Date and Account Current

Feb Apr. To PurC 90 10,080 112 June Aug. 1 By
18 asc Returns 22 Purchases -22
Apr July
25
To B.lls
Payable
25 -7,500 300 June
30
By 456-1 v
22 Balance c'd 1,58,468
Apr. Apr.
29
To Cash 62 31,000 500 SA
29
Mav June To Sales 29 15,718 542
17
.Jue To 65
Ihierrsi

I0 365
3,03,236 3,005 3,03,236 3,005
July 1 To Balance b/d 54T
Illustration 24. From the following particulars make out a n account current to be
rendered by Rakesh Chandra to Harish Chandra as on 31st March, 2002
2002
Jan Balance due from Harish Chandraa Rs.
Jan. 10 Sold goods to Harish Chandra 1,500
Feb Bill receivable received from Harish Chandra 1,200
(due one month after)
discounted with banker at 5%
Feb Sold goods to Harish Chandra, invoiced for Feb. 1,500
trade discount was at 10%.
15, Rs. 2,000,
Feb 8 Goods returned by Harish Chandra, sold to him on Feb. 2
Feb 28
Sold goods to Harish 200
Bill receivable from Chandra (payment
is due on April 15)
March 1,000
Harish Chandra due on this date is dishonoured.
Noting charges paid Rs. 20.
March 15 Received cash from Harish Chandra
March 20 Received bill receivable from Harish 400
March 31 Chandra due one month after 500
Sold goods to Harish
Chandra (payment
Interest is to be calculated at 20%
is due on May 15)
1,000
For Sobution see page I.321 p.a.
 S

322 Average Due Date and AcountOurent

 lustration 25. Mr. Mehra owed Rs. 30,000 on 1st January, 2000 to Mr. Somesh
The following are the transactions that took place between them during 2000. It ie agreed
between the parties that interest 15% p.a. is to be calculated on all transactiana
2000 Rs
Jan. 16 Mr. Somesh sold goods to Mr. Mehra 20,000
Jan. 29
Mr. Somesh bought goods from Mr. Mehra 15,000
Feb. 10 Mr. Somesh paid cash 15,000
March 13 Mr. Mehra accepted a bill drawn by Mr. Somesh for one month. 20,000
They desire to settle their accounts by one single payment on 15th March 2000. Aacertain the
amount to be paid to the nearest rupee. Ignore days ofgrace.
(Madras B.Com May 2000 Adaptec)
Solutioa. MR. MEHRA IN accoUNT, cURRENT wITE MR: 8OMES
D (Irnterest to 15th March 2000 @15% p.a.)
Date Particuars Amount Days Product Date ParticularsAmoynt Day Product
2000 Rs. 2000 Ra
Jan. 1 To Bal. b/d 30,000 75 22,50,000Jan..29 By Pur
Jan. 165 To Sales 20,000 11,80,000
5,10,000Mar 13
chases
ByB/R
. 1s000 690,000
Feb. 1O To Cas 15,000 34 20,000
Mar. I3 T Red ink Mar 15 By. Bance
of Products 38,30,000
Product (as
per contra) Mar.-15 By Balnce
(Rs.20,000 ed 31570
29 deys) 5,80,000
(Due date
of bil
April 13
Mar. 15 To Lnterest 1,570
(38,30,000
15/10
1/366)
66,570 45,20,000 66,570 45,20,000
Mar. 16 To Bel. b/d 31.570

Date and Account Curent 321

Average Due
 Notes: 1. Days have been calculated as follows
Jan. 1 Jan. 31 Feb.
Jan. 16
29 March 15 - 75 days
Jan. 15 Feb. 29 March 15
Feb. 10
59 davs
Feb. 19 March 15 34 days
Jan. 29 Jan. 2 Feb. 29 March 15 -46 days
March 13 Bill due on April 13
Days from March 15 to April 13
March 16 April 13 29 davs
2. Year has been taken of 366 days.
Illustration 26. During the year 2002, Ram sold goods to Shyam as follows
Rs. 10,000 payable on 5th February.
Rs. 8,000 payable on 20th March.
Rs. 7,000 payable on 15th August.
Rs. 6,000 payable on 16th Septembeer.
During the same year, Ram also purchased goods from Shyam as under
Rs. 2.000 due on 8th July.
Rs. 3,000 due o n 20th September.
Rs. 7,000 due on 27th October
Rs 4,000 due on 18th November.
The parties settle their a c c o u n t s on 30th November, interest being calculated ( 12%
per annum.

Prepare Shyam in account current with Ram.

Solution.
Dr. SHYAM IN ACCOUNT CURRENT WITH RAM Cr.
Date Particulars Days Amount Product Date Particulars Days Amount Product
to 30th to 30th

Nov Rs. Nov. Rs.

2002 202
To Sales 298 10,000 29,80.000 Jul. 8 B Purchases 145 2.000 2,90.000
Feb.5
255 8,000 20.40,000 Sept. 20 By Purchascs 71 3.000 2.13,000
Mar. 20 To Sales
107 7,000 7,49,000 Oct. 27 Purchases 34 7.000 2.38.0000
Aug. 15 To Sales
To Sales 75 6.000 4.50.000 Nov. 18 By Purchases 12 4000 48000
Sept. 16
Nov. 30 To Inierest on Nov. 30 Balance of
Rs. 54,30,000 Products 54.30,000
for one day 1,785 Nov. 30 By Bank 16,785
32,785 62,19,000 32,785 62,19,0000
peiodical Ralance Method
(B) Account Current
Test Your Understanding
State whether the following statements a r e 'True' or 'False':
(a Account current is astatement in debit and credit form recording the transactions between
two parts in chronological order with provision for calculating interes
b Red ink interest entry is to be made when the due date of the transaction falls beyond
the settiement date.
(cThe method of account current usually employed by a banker is known as Product
method
Ans. True : (a), (b); False : (c)]
QUESTIONS
1. What do you mean by an Account Current ?
2. Why is an Account Current prepared ?
3 What is the difference between
( an Account Current and Current Account;
( an Account Current and Account Sales ?
4. Point out the various methods of calculating interest.
5. Write short notes on: Red ink interest, Product method, Forward method.

Problems
1. The following transactions took place between Arvind and Ramesh from 1st January
to 30th June, 2000:
2000 Rs. 2000 Rs
S o l d goods to Ramesh 1,120 April 11 Cash paid to Ramesh 1.000
Jan
10 Received his acceptance 30
Goods sold to Ramesh
500 due end of May 1,200
of 2 months
15 Cash received from Ramesh 600 May 1Bought goods from Ramesh 75
Feb.
Ramesh 2,750 31 Sold goods to Ramesh due
Mar. 2 Bought goods of
June 10 1,100
5 Accepted Rameesh's bil
1 , 0 0 0 J u n e 15 Bought goods from Ramesh 1.500
for one month

Account Current 329

Average Due Date and
 You
required to make out an account to be
are
rendered by Arvind
akng interest into account at 5% as on June 30, 2000,
p.a.
2. Make out an account
Ans. Interest Rs. 14. 10: Balance due to
current to be rendered Ramesh Rs. 694.10|
2000 in respect of the
following items appearing in
by Suresh to Dhanraj on 31st
2000 Suresh's books March,
Rs. 2000
Jan. 1 Balance brought forward Rs
Feb. 20 Received
(Dr.) cash from
2,250
15 Sold goods to
Dhanraj 1.500 Dhanraj 1.500
25 Received cash from Mar 1 Paid cash
Dhanraj
to
5 1.250
Dhanra 2,250
Brought goods from
Feb 4 Sold goods to
Dhanraj 3.200 Dhanraj 3,500
Sold goods to
15 Dhanraj
Received cash from
1.600
Interest is to be taken into account Dhanraj
at 10% per annum. 1,000
3. The Ans. Interest Rs. 68.59; Balance
due
months following transactions took place between Rama
from Dhanraj Rs.
1,618,59
ending 30th June, 2000 : and Shiva
2000 during the six
Jan. 1 Rs. 2000
Sold goods to Shiva
10 Received his acceptance 5,600 Apr. 11 Cash paid to Shiva Rs.
at three months
2.500
30 Goods sold to Shiva, due 5,000
Feb 15 Cash received from 30th May
Shiva May 11 6,000
Mar. 2 3,000 Bought goods from
Bought goods from Shiva
3,750
Shiva 31 Sold goods to
Shiva,
3
Accepted Shiva's draft at 13,750 June 15
due 15th June
5,500
one month
5,000 Bought goods from
Make out an account Shiva
current to be rendered by Rama to 7,500
taking interest into account at 6% Shiva as on 30th
June, 2000,
per annumn.
3. On [Ans. Interest Rs. 84.57; Balance due to Shiva
January 1, 2003, Kutty opened a current account at X
Rs. 3,484.57
His further
deposits were Bank Ltd. by
His withdrawals were depositing Rs. 5,000.
20th January
Rs. 2,500 20th
20th March February Rs. 6,000
20th May 3,000 20th April
3,500 20th June 5,000
Prepare the account current in the
books of the Bank as 2,500
the bank interest
counting 5% p.a. on the customer's debit
on 30th June 2003. Calculate
balances. balances and 2% p.a. on credit
Ans. Interest on debit balances Rs.
2.05: Credit balances Rs.
4.
Sundaram is in account current with 33.34; Balance Cr. 531.29
have taken
place between 1st January and 30th Ganapathy and the íollowing transactions
Jan. Balance Rs. 850 due by Sundaram April 2003:
Jan. 15 Sold goods to Sundaram Rs.
Jan. 25 Received cash from Sundaram 1,500
Feb. 10 Received bill receivable due 2 months after for 500
Feb. 20 Sold goods to Sundaram due 800
Mar. 15 Purchased goods from Sundaram by 31st March 2,500
Mar. 31 Received cash from Sundaram 1,000
A ril 15 Sold goods to Sundaram due 1,000
30th April
Prepare an account current to be rendered byby 1,300
2003 recovering interest at 5% Ganapathy to Sundaram on 30th April
per annum. Ans. Interest Rs. 271
5. On January 1, 2003,
Kutty openeda current account eat X Bank Ltd. by
His further deposits were
His withdrawals were
depositing Rs. 5,000.
20th January Rs.
20th March
2,500 20th February Rs. 6,000
3,000 20th April
20th May 20th June 3,500 5,000
Prepare the account current in the books of the Bank as on 30th June 2,500
the bank interest 2003. Calculate
balances.
counting 5% p.a. on the customer's debit balances and
2% p.a. on credit
Ans. Interest on debit balances Rs. 2.05: Credit balances Rs.
33.34; Balance Cr. 531.29
330 Average Due Date and Account Current
 4. A partner has withdrawn the
30th June. 2003:
following sums of money during the half-year ended
Rs
January. 15 Rs
300 March, 26 200
February, 28 250 April, 200 400
March, 10 150 May, 16 300
June, 18 500
Interest is to be charged at 8% per annum. Find out the average due date and calculate
the amount of interest to be debited to the partner.
Hint : Assume 30th June as the base date:
Due Date Amount No. of Days from Product
R: 30th June Rs
Jan. 15 300 166 49,800
Feb. 28 250 122 30,500
March 10 150 112 16,800
March 26 200 96 19,200
April 20 400 71 28,400
May 165 300 45 13.500
June 18 500 12 6,000
2,100 1.64,200
J a n . 16 + Feb. 28 Mar. 31 + Apr. 30 May 31 June 30 166
Average Due Date is 1,64,200/2100 78 days before the base date, i.e., 13th April
3 0 June 31 May + 17 April).
Interest to be charged from 13th April to 30th June, i.e., for 78 days@ 8% p.a.
Interest = 2,100 x 78/365 8/100 Rs. 35.90.
7. The following transactions took place between Kumaran and Kandan from 1st January
to 31st March 2003
Rs.
Jan. 6 Sold goods to Kandan 5,000
20 Purchased goods from Kandan 2,000
Feb. 1 Received one month acceptance from
Kandan for 3,000
10 Sold goods to Kandan 3,000
25 Received goods returned from Kandan 200
28 Received cash from Kandan 1,500
March 2 Purchased from Kandan 1,800
5 Accepted 1 month bill in favour of Kandan for 1,000
Prepare an account current to be rendered by Kumaran as on 31st March 2003, taking
interest at 18% per annum. (Madras BCA May 2001)
8. From the following, prepare an account as set by Arun to Bhola on 30th June 2003, charging
interest on debits @ 6% and on credits @ 4% p.a.
2003
Jan. Balance due to Bhola
Rs
600
Jan. 10. Sold goods to Bhola 520
Jan. 17. Bhola Returned goods 125
'Feb. 10. Bhola Paid by cheque
400
Feb. 14. Bhola accepted Arun's draft for 1 month
300
April 29. Goods sold to Bhola
15 Received cash from Bhola 615
May
June. 5. Bhola accepted Arun's bill for 700
3 months
500
9. Mohan has the (Bharathiar B.Com. Nov. 1999 Adapted)
following transactions with Shohan for the
to 30th June. Make out an account
current to be rendered period from 1 st Jan.
interest 5% p.a. by Mohan on 30th June, calculating

January 1 Balance due by Sohan Rs.

January 2 Sold goods to Sohan 1,300
February 15 Received cash from Sohan 1,600
2,500
Average Due Date and Account Current
331
 March 55
March 13
Bought goods from Sohan
Issued a bill 1,000
April 10 Sold
payable to Sohan at 2m/d 500
goods Sohan
to
April 20 Received cash from Sohan 1.500
May 15 Sold goods to Sohan due 1,000
June 15 end of June 1,200
Received cash from Sohan
300
Ans. Interest Rs. 18.59 (Dr.); Balance: Rs. 1,318.59
(Madras B.Sc./B.C.A. April
(Dr.)
10. From the 2000 Adapted)
following particulars, prepare an
31-8-2003. calculating account current to be rendered by A to B as on
interest at 10% p.a.
2003
Rs.
June 11 Goods sent to B
10,200
5 Cash received from B
5,000
20 Goods sent to B 6,500
July 7 Goods sent to B
7,000
8 Cash received from B
11,000
(B.Com. Bharathiar April 2001
Amount due Rs. 7,700 plus interest Rs.Adapted)
(Ans.
11. On 1st
January 2003. the amount due to from Gopal to Krishnan was Rs. 285.52]
the six months ended June, the
transactions were as follows: 1,000. During
2003
Rs.
February 10 Sold goods to
Gopal
March 15 2,000
Purchased goods from Gopal 600
April 20 Cash
received from Gopal
May 15 800
Cash paid to Gopal
600
Prepare an account current to be rendered
calculating interest 12 % p.a. by Krishnan to Gopal on 30th June 2003
(Madras B.C.S. May 2001 Adapted)
Ans. Gopal's A/c Balance Rs. 2,320: Interest Rs. 120

332
Average Due Date and
Account Current