Ram withdrew ₹1,500 at the end of each quarter during the year ended 31st March, 2016. Interest on drawings is charged @ 9% per annum. Find out interest on drawings. Also give Journal Entry.
Answers
Answered by
5
Answer:
1,500 × 4 = 6,000
6,000 × 9% × 4.5/12 = 202.5 or 203
drawings a/c Dr 6,000
to cash a/c 6,000
ram a/c Dr 6,000
to Drawings a/c 6,000
ram a/c Dr 203
to interest on Drawings a/c 203
interest on Drawings a/c Dr 203
to profit and loss Appropriation a/c 203
Similar questions