Find the amount that the account holder receives on closing the account on 20th October

Question

A page from the passbook of a Savings Book Account in a particular year is given value:

DATE	PARTICULARS	DEBIT	CREDIT	BALANCE
JAN.3	BY CASH		5000.00	5000.00
FEB.13	TO SELF	500.00
MARCH 24	BY CHEQUE		2000.00
MARCH 31	BY INTEREST
MAY 20	BY CASH		800.00
JULY 7	TO CHEQUE	1400.00
JULY 18	BY CASH		1600.00
SEPT.15	TO CHEQUE	3200.00
SEPT.26	BY CHEQUE		2350.00

If the interest is calculated at 6% p.a. and is compounded  at the end of March and September every year, find the interest earned up to 31st March and then after completing all the entries , find the amount that the account holder would have received had he closed the account on 20 Oct. the same year. 

 

Answer 1

DATE	PARTICULARS	DEBIT	CREDIT	BALANCE
JAN 3	CASH		5000.00	5000.00
FEB 13	SELF	500.00		4500.00
MAR 24	CHQ		2000.00	6500.00
MAR 31	INT@3% ON 6500		195.00	6695.00
MAY 20	CASH		800.00	7495.00
JUL 7	CHQ	1400.00		6095.00
JUL 18	CASH		1600.00	7695.00
SEP 15	CHQ	3200.00		4495.00
SEP 26	CHQ		2350.00	6845.00

If the account was closed on Oct 20 the interest on the balance would be 205.35 (3% of 6845, because annual rate is 6% making the 6-month rate 3%), so the total amount would be 6845+205.35=7050.35.