ICSE Class 10 Answered
In banking , saving bank a/c inform to take the balance after 10th day of the month to till end of the month. But some times its using before 10. Will u plz explain me?
Asked by savi1405 | 26 May, 2016, 06:21: PM
Expert Answer
In a saving bank account, the minimum balace on 10th day and upto the last day of the month qualifies as principal for the interest of that month.
In some cases it may happen that tranzation is done before 10 and after that no tranzation is done till the last day of the month.
In this situation the balace in the account before 10 will remain as it is for rest of the month hence it is taken as the minimum balace of that month.
Example.
Ramesh had Rs. 10000 in his saving account on 1st July.
He withdraws Rs. 2000 on 5th July.
Now balace in his account on 5th July is Rs 8000.
Ramesh has not done any tranzation till the last day of the July (31st July).
Balace in the saving account on 10th July = Rs. 8000.
Minimum balace in the saving account from 10th July to 31st July = Rs. 8000.
Hence in this case the minimum balace which will qualify as principle is Rs 8000.
Answered by Vijaykumar Wani | 27 May, 2016, 01:00: PM
