Question

2.85
A partner drew the following amounts on the dates mentioned Calculate interest on drawings @ 6% pa. when
accounts are closed on 31st December every year.
Date 2014
Ist January lat May Ist July
Ist November Ist December
Amount ()
500
1.000
1.000
500
1.000
​

Answer 1

Explanation:

ACCOUNTANCY

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Asked on December 27, 2019 by

Gunika Nainwani

(Calculation of Interest on Drawings by Simple Method and Product Method). In a partnership, partners are charged interest on drawings @ 15% p.a. During the year ended 31st March, 2018, a partner drew as follows:

Date 1st May, 2017 1st August 2017 30th September, 2017 31st January, 2018 31st March, 2018

Amount (Rs.) 2,000 5,000 2,000 6,000 2,000

What is the interest chargeble from the partner?

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ANSWER

PRODUCT METHOD

Dates Amount(A) No.of months up to 31st march.2108(B) Product

C= A*B

1/5/17 2000 11 22,000

1/8/17 5000 8 40,000

30/9/17 2000 6 12,000

31/1/18 6000 2 12,000

31/3/18 2000 0 0

Total 17000 86,000

Interest on Drawings= 86,000*15%*1/12 =1075

Simple Method

Date Amount No.of months up to 31st march,2018 Interest@15%

1/5/17 2000 11 275

(2000*15%*11/12)

1/8/17 5000 8 500

(5000*15%*8/12)

30/9/17 2000 6 150

(2000*15%*6/12)

31/1/18 6000 2 150

(6000*15%*2/12)

31/3/18 2000 0 0

Total 1075