Question

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?​

Answer 1

Answer:

ans 7000 will be the ans

Answer 2

The total months for which interest on drawings must be charged should be 7.5 months

Explanation:

Interest on drawings is charged from the partner only if such is mentioned in the partnership deed.

It is calculated by considering the time period for which the money was withdrawn,as shown below,

• If Rate of interest is given as a fixed percentage on drawings,it can be simply calculated by applying the flat rate on the drawings.
• If the date of drawings is not mentioned then it can be calculated by applying the percentage of interest on a 6 month period(Always assume it to be 6 months),as follows, $Total Drawings \times \dfrac{Rate}{100} \times \dfrac{6}{100}$

•  If the drawings are made at the beginning of each quarter,the time period for which interest is to be charged is taken as 7.5 months.

• If the drawings are made at the end of each quarter,then the time period is taken as 4.5 months.

In the given case,Amit had withdrawn Rs.7,000 at the end of each quarter,therefore the time period for which interest should be charged is 7.5 months.