Question

Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged @ 10% p.a. Their drawings during 2017 were Rs 24,000 and Rs 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year.

Answer 1

Answer:Amit 1200

Bhola 800

Explanation:

Answer 2

Answer:

Explanation:

Profit share = 3:2

Interest on drawings = 10%

Interest on Drawings = Drawings × Rate/100

Drawings of Amit -

= 24,000 × 10/100 × 6/12

= 1,200

Drawings of Bhola -

= 16,000 × 10/100 × 6/12

= 8,00

Therefore, the interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year will be Rs. 1200 and Rs. 800.