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M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?
- a)Rs.2,250
- b)Rs.1,800
- c)Rs.2,000
- d)Rs.1,100
Correct answer is option 'A'. Can you explain this answer?
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M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accep...
Calculation of Interest on Bill Renewal
Given:
Amount of bill = Rs. 50,000
Rate of interest = 18% p.a.
Step 1: Calculation of Interest for first 3 months
As the bill was accepted on 1.10.05, the due date would be 3 months later i.e on 1.1.06. The interest for these three months is calculated as follows:
Interest = (Amount x Rate x Time) / 100
= (50,000 x 18 x 3) / (100 x 12)
= Rs. 2,250
Step 2: Calculation of Interest for next 3 months
As N requested for renewal of the bill for another 3 months, the new due date would be 1.4.06. The interest for these three months is calculated as follows:
Interest = (Amount x Rate x Time) / 100
= (50,000 x 18 x 3) / (100 x 12)
= Rs. 2,250
Step 3: Calculation of Total Interest
The total interest to be paid by N would be the sum of interest for both the periods i.e for 6 months.
Total Interest = Rs. 2,250 + Rs. 2,250
= Rs. 4,500
Step 4: Calculation of Interest in Cash
As N agrees to pay interest in cash, the amount of interest to be paid in cash would be Rs. 2,250.
Therefore, the correct answer is option 'A' - Rs. 2,250.
Given:
Amount of bill = Rs. 50,000
Rate of interest = 18% p.a.
Step 1: Calculation of Interest for first 3 months
As the bill was accepted on 1.10.05, the due date would be 3 months later i.e on 1.1.06. The interest for these three months is calculated as follows:
Interest = (Amount x Rate x Time) / 100
= (50,000 x 18 x 3) / (100 x 12)
= Rs. 2,250
Step 2: Calculation of Interest for next 3 months
As N requested for renewal of the bill for another 3 months, the new due date would be 1.4.06. The interest for these three months is calculated as follows:
Interest = (Amount x Rate x Time) / 100
= (50,000 x 18 x 3) / (100 x 12)
= Rs. 2,250
Step 3: Calculation of Total Interest
The total interest to be paid by N would be the sum of interest for both the periods i.e for 6 months.
Total Interest = Rs. 2,250 + Rs. 2,250
= Rs. 4,500
Step 4: Calculation of Interest in Cash
As N agrees to pay interest in cash, the amount of interest to be paid in cash would be Rs. 2,250.
Therefore, the correct answer is option 'A' - Rs. 2,250.
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M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?a)Rs.2,250b)Rs.1,800c)Rs.2,000d)Rs.1,100Correct answer is option 'A'. Can you explain this answer?
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M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?a)Rs.2,250b)Rs.1,800c)Rs.2,000d)Rs.1,100Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?a)Rs.2,250b)Rs.1,800c)Rs.2,000d)Rs.1,100Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?a)Rs.2,250b)Rs.1,800c)Rs.2,000d)Rs.1,100Correct answer is option 'A'. Can you explain this answer?.
M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?a)Rs.2,250b)Rs.1,800c)Rs.2,000d)Rs.1,100Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?a)Rs.2,250b)Rs.1,800c)Rs.2,000d)Rs.1,100Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?a)Rs.2,250b)Rs.1,800c)Rs.2,000d)Rs.1,100Correct answer is option 'A'. Can you explain this answer?.
Solutions for M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?a)Rs.2,250b)Rs.1,800c)Rs.2,000d)Rs.1,100Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
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ample number of questions to practice M sold goods worth of Rs. 50,000 to N. on 1.10.05, N immediately accepted a three month bill. On due date N requested that the bill be renewed for a fresh period of 3 months. N agrees to pay interest @ 18%p.a. in cash. How much interest to be paid in cash by N?a)Rs.2,250b)Rs.1,800c)Rs.2,000d)Rs.1,100Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
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