When a partner withdraws unequal amount on different dates,interest is calculated by-?
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sorry but I don't understand
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When different amounts are withdrawn on different dates,then PRODUCT METHOD of calculating interest on drawings is used.
Under this method, amount of each drawing is multiplied with its time duration. After that all the products are added together and interest is calculated on the total of products for a month.
Hope it helps.
Interest on Drawings = Total products*rate of interest*1/12
When different amounts are withdrawn on different dates,then PRODUCT METHOD of calculating interest on drawings is used.
Under this method, amount of each drawing is multiplied with its time duration. After that all the products are added together and interest is calculated on the total of products for a month.
Hope it helps.
Interest on Drawings = Total products*rate of interest*1/12
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