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Account current:
Account current is a statement of mutual transactions between two
parties for a given period and includes interest receive and interest payable at an agreed
rate.
For example: Account rendered by Akram shah to Mohsin shah is as follows.
Mohsin shah in current Account with Akram shah
Methods of preparing Account current:
a) Product Method:
Under this method the interest are calculated at the end of
account using the following formula.
Interest = Balance of product / 365 * rate of interest
b) Interest Method:
Under this method the interest are not calculate at the end, but
it is calculated with each transaction respectively the following formula:
Interest = Amount * No. of days / 365 * Rate of interest
Prepared By: Mutahar hayat Student of Muslim commerce College & Management
B.com
Mail:Mutahar_hayat@yahoo.com
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Financial Accounting 2
Prepared By: Mutahar hayat Student of Muslim commerce College & Management
B.com
Mail:Mutahar_hayat@yahoo.com
Contact: 0335-5202081