Question

Amount of closing capital of a partnership Mask of a firm is Rs 64000 after giving effect for drawings of Rs 4000 and divisible profit of Rs 6000. Calculate int.on Capital At. 5%​

Answer 1

Answer:

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