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Rakesh retired from the firm the amount due to him was determined at 900 it was decided to pay the due amount as follows on the date of retirement 30,000 balance in 3 yearly instalments first 2 installments being of 26000 including interest and balance amount as last installment interest was payable@ 10% pa prepare loan a/c?
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Rakesh retired from the firm the amount due to him was determined at 9...
Loan Account of Rakesh

Particulars


  • Date of Retirement:

  • Due Amount: 900

  • Payment Details:


    • 30,000 on the date of retirement

    • 2 yearly installments of 26,000 including interest

    • Last installment to be paid with the balance amount

    • Interest rate: 10% per annum




Calculation of Interest


  • Interest on payment of 30,000 on the date of retirement: 0 (no interest as it is paid on the same day)

  • Interest on the first installment of 26,000: 2,600 (10% of 26,000)

  • Interest on the second installment of 26,000: 2,860 [(10% of 26,000) + (10% of 26,000 + 2,600)]

  • Interest on the last installment: 1,116 [(10% of 900) + (10% of 900 + 2,600 + 2,860)]



Loan Account of Rakesh









































DateParticularsAmount
Retirement DateTo Cash A/c (Payment of due amount)900
Retirement DateTo Interest A/c (Interest on payment of 30,000)0
First YearTo Interest A/c (Interest on first installment)2,600
Second YearTo Interest A/c (Interest on second installment)2,860
Last Installment DateTo Interest A/c (Interest on last installment)1,116
Last Installment DateTo Cash A/c (Payment of last installment)10,424
Total17,900


Conclusion

Rakesh's loan account shows that the total amount paid to him was 17,900, which includes the due amount of 900 and the interest on the different installments. The interest was calculated at the rate of 10% per annum. The payment was made in different installments, with the last installment being the balance amount.
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Rakesh retired from the firm the amount due to him was determined at 9...
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Rakesh retired from the firm the amount due to him was determined at 900 it was decided to pay the due amount as follows on the date of retirement 30,000 balance in 3 yearly instalments first 2 installments being of 26000 including interest and balance amount as last installment interest was payable@ 10% pa prepare loan a/c?
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Rakesh retired from the firm the amount due to him was determined at 900 it was decided to pay the due amount as follows on the date of retirement 30,000 balance in 3 yearly instalments first 2 installments being of 26000 including interest and balance amount as last installment interest was payable@ 10% pa prepare loan a/c? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Rakesh retired from the firm the amount due to him was determined at 900 it was decided to pay the due amount as follows on the date of retirement 30,000 balance in 3 yearly instalments first 2 installments being of 26000 including interest and balance amount as last installment interest was payable@ 10% pa prepare loan a/c? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Rakesh retired from the firm the amount due to him was determined at 900 it was decided to pay the due amount as follows on the date of retirement 30,000 balance in 3 yearly instalments first 2 installments being of 26000 including interest and balance amount as last installment interest was payable@ 10% pa prepare loan a/c?.
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