Question

Rakesh and Roshan are partners. They withdrew from the firm following amounts for their personal
use - (1)
Rakesh
May 31, 2017
August 31, 2017
June 30, 2017
Rs 600
Rs 1,000
Rs 500
Roshan
November 1, 2017
Rs 400
Interest is to be charged @ 6% p.a. Calculate interest on drawing, assuming that book of accounts are
closed on March 31, 2018 every year.​

Answer 1

Explanation:

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