Amit, a partner in a partnership firm withdrew ₹ 7,000 in the beginning of each quarter. For how
many months would interest on drawings be charged?
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If a Partner is withdrawn in the beginning of each quarter then Interest on drawing will be charged for 7.5 months
Explanation:
For calculating the the months required for interest on drawing we can use formula that is
Month required = number of month left after 1st withdrawal + number of months left after last withdrawal ÷ 2
12+3÷2=7.5
If a partner will withdraw in the beginning of each quarter then= 12 month
If a partner will withdraw in the beginning of last quarter then = 03 month
will be left to close the financial year.
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