Question

calculate interest on X's drawings @ 12%, if he withdraws Rs. 2,000 at the beginning of every month during the year . ​

Answer 1

Explanation:

Since nothing is stated about the timing of the drawings every month, so we can assume safely that he withdraw money at the middle of the month. X withdraw Rs.24000 during the year and rate of interest provided is 12%. The Interest on Drawings chargeable from him is for six months. Logic behind this is that the amount he withdrew in the 1st month was outstanding for 11.5 months and last month's drawing were outstanding for 1/2 month, the average comes to 6 months. Similarly take average of 2nd and 11th months, 3rd and 10th, 4th and 9th and so on. You will find that the amount outstanding for each paid is 6 months, hence the total amount remains outstanding for 6 months.

Since nothing is stated about the timing of the drawings every month, so we can assume safely that he withdraw money at the middle of the month. X withdraw Rs.24000 during the year and rate of interest provided is 12%. The Interest on Drawings chargeable from him is for six months. Logic behind this is that the amount he withdrew in the 1st month was outstanding for 11.5 months and last month's drawing were outstanding for 1/2 month, the average comes to 6 months. Similarly take average of 2nd and 11th months, 3rd and 10th, 4th and 9th and so on. You will find that the amount outstanding for each paid is 6 months, hence the total amount remains outstanding for 6 months.Interest on Drawings = 24000 X 12/100 X 1/2 = Rs. 1440/-

Answer 2

Explanation:

Partnership Deed is a written agreement among the partners of a partnership firm. It includes agreement on profit sharing ratio, salaries, commission of partners, interest provided on partner's capital and drawings and interest on loan given or taken by the partners, etc. Generally following details are included in a partnership deed.