Rishi is a partner in a firm. He withdrew the following amounts during the year ended March 31, 2018. May 01, 2017 Rs 12,000 July 31, 2017 Rs 6,000 September 30, 2017 Rs 9,000 November 30, 2017 Rs 12,000 January 01, 2018 Rs 8,000 March 31, 2018 Rs 7,000 Interest on drawings is charged @ 9% p.a. Calculate interest on drawings.
Answers
Given : Rishi is a partner in a firm. He withdrew the following amounts during the year ended March 31, 2018. May 01, 2017 Rs 12,000 July 31, 2017 Rs 6,000 September 30, 2017 Rs 9,000 November 30, 2017 Rs 12,000 January 01, 2018 Rs 8,000 March 31, 2018 Rs 7,000 Interest on drawings is charged @ 9% p.a.
Solution :
Calculation of interest on drawings is in the attachment below :
Interest on drawings = Sum of the product × Rate/100 × 1/12
= 306000 × 9/100 × 1/12
Interest on drawings = ₹ 2295
Extra information :
Interest on drawings :
interest on drawings is calculated on the amount of drawings from the date of drawing to the date of closing of accounting year interest on drawings is calculated on the basis how the drawings are made and drawings are usually made in the following manner :
- Lump-sum amount of drawing during the year.
- Fixed amount of drawing at a fixed period of time.
- Varying amount of drawings at different intervals.
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Here are some more questions from this chapter :
Ramesh and Suresh were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were Rs 80,000 and Rs 60,000 respectively. The firm started business on April 1, 2016. According to the partnership agreement, interest on capital and drawings are 12% and 10% p.a., respectively. Ramesh and Suresh are to get a monthly salary of Rs 2,000 and Rs 3,000, respectively. The profits for year ended March 31, 2017 before making above appropriations was Rs 1,00,300. The drawings of Ramesh and Suresh were Rs 40,000 and Rs 50,000, respectively. Interest on drawings amounted to Rs 2,000 for Ramesh and Rs 2,500 for Suresh. Prepare Profit and Loss Appropriation Account and partners’ capital accounts, assuming that their capitals are fluctuating.
https://brainly.in/question/17097643
Ramesh and Suresh were partners in a firm sharing profits in the ratio of their capitals contributed on commencement of business which were Rs 80,000 and Rs 60,000 respectively. The firm started business on April 1, 2016. According to the partnership agreement, interest on capital and drawings are 12% and 10% p.a., respectively. Ramesh and Suresh are to get a monthly salary of Rs 2,000 and Rs 3,000, respectively. The profits for year ended March 31, 2017 before making above appropriations was Rs 1,00,300. The drawings of Ramesh and Suresh were Rs 40,000 and Rs 50,000, respectively. Interest on drawings amounted to Rs 2,000 for Ramesh and Rs 2,500 for Suresh. Prepare Profit and Loss Appropriation Account and partners’ capital accounts, assuming that their capitals are fluctuating.
https://brainly.in/question/17097643
