Question

Accounts class 12
Usha withdrawsRs. 2,000 in the beginning of every month. If 10 % p.a. interest is chargeable on

drawings, determine annual drawings and interest on drawings.​

Answer 1

Answer:

Explanation:

First we will have to calculte the monthly interest payable

2000*10/100*12/12=200.00

2000*10/100*11/12=183.33

2000*10/100*10/12=166.66

2000*10/100*9/12=150.00

2000*10/100*8/12=133.33

2000*10/100*7/12=116.66

2000*10/100*6/12=100.00

2000*10/100*5/12= 83.33

2000*10/100*4/12= 66.66

2000*10/100*3/12= 50.00

2000*10/100*2/12= 33.33

2000*10/100*1/12= 16.66

Total of interest will be 1299.96  (rounded off to 1300..00

Now entry will be as under:-

1.

Drawings A/c Dr  24000.00

 To Bank A/c             22700.00

 To interest (on drawings)     1300.00

Above entry has been made taking in consideration that amount of interest has been deducted every month form the amount payable

2.

If the amount of interest has been taken in cash then entry will be as under:-

Cash A/c Dr    1300.00

Drawings A/c Dr     24000.00

   To Bank A/c                             24000.00

   To Interest (on drawings )           1300.00

Answer 2

Answer:

ruppes 24000 and ruppes 1300