Question

20. Yasashvi and Tapashvi are partners in a firm. During the year ended on 31st March 2020,

Yasashvi makes the drawings as under:

Date of Drawings ₹

01.08.2019 5,000

31.10.2019 8,000

31.12.2019 10,000

31.03.2020 15,000


Partnership Deed provided that partners are to be charged interest on drawings @ 12% p.a. Calculate the

interest on drawings of Yasashvi under Product Method.​

Answer 1

Answer:

The Interest on Drawings of Yasashvi (under Product Method) = ₹ 1,100

Step-by-Step Explanation:

Given :

• Yasashvi and Tapashvi are partners in a firm

• During the year ended on 31 st March, 2020

• Yasashvi makes the drawings as under:

★ Date of Drawings =

01.08.2019 = ₹ 5,000

31.10.2019 = ₹ 8,000

31.12.2019 = ₹ 10,000

31.03.2020 = ₹ 15,000

• Interest Rate = 12 % p.a.

To find :

• Interest on drawings of Yasashvi

(Under Product Method)

Solution :

Formula used :

$\boxed{\sf{Interest \:on \: Drawings \: = \: Sum \: Of \: Product \: \times \: Rate\:Of\:Interest \: \times \: \dfrac{1}{12}}}$

$\begin{tabular}{|c|c|c|c|}\cline{1-4}\ \: DATE & AMOUNT & \: PERIOD\:(upto\:end) & \: PRODUCT (RS.) \\\cline{1-4}\ 1.08.2019&5,000 & 8 & \: 40,000 \: \\\cline{1-4}\ 31.10.2019&8,000& 5 \:&40,000 \\\cline{1-4}\ 31.12.2019&10,000& 3 \:&30,000\\\cline{1-4}\ 31.03.2020&15,000& 0&0 \\\cline{1-4}\ Sum of product: & & & 1,10,000 \\\cline{1-4}\end{tabular}$

(Incase you're an app user, kindly refer the attachment to see the above data)

Interest on drawings:

$\sf{\longrightarrow{1,10,000 \: \times \: \dfrac{12}{100} \: \times \: \dfrac{1}{12}}}$

$\sf{\longrightarrow \: {1100}}$

Interest on Drawings = ₹ 1,100

∴The Interest on Drawings of Yasashvi (under Product Method) = ₹ 1,100