Hemant with draw 2500 at the end of each month.the partnership did provide for charging the intrest of drawing 12% calculate interest on drawing for the air ending 31st December 2013.
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Interest on drawings is an income for the business, hence, it is added to the interest account of the firm thereby increasing the total income of the business. In common scenarios where interest on capital is charged by the owner, interest on drawings is also charged by the business.
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