Give necessary journal adjusting entries at the beginning of next year 19. XY and Z are partners in a firm, You are informed that (a) X drews Rs. 4,000 from the firm at the beginning of every month (b) Y drews Rs. 4,000 from the firm at the end of every month (c) Z drew R$ 4,000 from firm at middle of every month. Interest on drawings is to be charged 9% p.a. Calculate interest on partner's drawings.
Answers
Explanation:
X withdraw at the beginning of every month Rs 4000 per month
Drawing = 12×4000 = 48,000
Intrest on drawing = 48,000×9%×13/2×12
= 2340
Y withdraw at the end of month Rs 4000 per month
intrest on drawing = 48000×9%×11/2×12
= 1980
Z withdraw at the middle of every month Rs 4000
intrest on drawing = 48000×9%×6/12
= 2160
X capital A/c Dr 48,000
Y capital A/C Dr 48,000
Z capital A/c Dr 48,000
To X drawing A/c 48,000
To Y drawing A/c 48,000
To z drawing A/c 48,000
X drawing A/c Dr 2340
Y drawing A/c Dr 1980
z drawing A/c Dr 2160
To intrest on drawing 6480