A,B &C started a business on 1st October, 2019 sharing profits equally. A drew regularly Rs. 4,000 in the beginning of every month for the six months ended 31st March, 2020. B drew regularly Rs. 4,000 at the end of every month for the six months ended 31st March, 2020. C drew regularly Rs. 4,000 in the middle of every month for the six months ended 31st March, 2020. March, 2020.
Calculate interest on drawings @5%p.a for the period ended 31st March, 2020.
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Answer:
12th
Accountancy
Accounting for Partnership Firms - Fundamentals
Special Aspects of Partnership Accounts
A and B are partners sharin...
ACCOUNTANCY
A and B are partners sharing profits equally. A drew regularly Rs. 4,000 in the beginning of every month for six months ended 30th September, 2018. Calculate interest on drawings @ 5% p.a. for a period of six month
December 26, 2019
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Thilakavathy Merlin
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Calculation of interest on drawings:
Number of drawings = 6
Amount of each drawing= 4000
Total drawings= 6*4000
= 24000
Number of months= [Time left after 1st drawing + Time left after last drawing]/2
= [6+1]/2
= 3.5 months
Hence,
Interest on drawings= 24000 * 5/100 * 3.5/12
= 350