calculation of interest on partners current account

This query is : Resolved

ameya (Querist)
Follow

10 June 2010 how is the interest calculated on partners current account ??? is it calculated on closing balance or as per Avg Due Date... pls give detailed solution and calculationssss.........

Rahul Gupta

Rahul Gupta (Expert)
Follow

10 June 2010 Interest on Partner's Current account is generally provided as per the Partnership deed or on proportionate basis for the number of days on the balance amount. The sample claculation is given below.(Sorry for the presentation given because of the limitation of teh way to post here)

Interest @10%

Date Deposit / (Drawing) Balance Amount Interest Days of Interest
01.04.2010 Rs150,000 Rs 2506 61Days
01.06.2010 Drwawings Rs-10,000
Rs140,000 Rs4679 122Days
01.10.2010 Rs15000 Deposit
Rs155,000 Rs3906 92 Days
01.01.2011 Rs-25000 Drwaings
Rs130,000 Rs3205 90 Days

Total Interest Rs 14298 365 Days

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

10 June 2010 The partnership deed, normally, contains a clause regarding payment of interest,the rate and method of calculating the same. If so, follow that method.
If the appropriate information regarding the method of calculation of interest is not specifically mentioned in the instrument of partnership, it is a convention that the interest on current account is calculated on the outstanding daily balance.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Aniruddha Mody

Rampal Saini

Jitin Aditya Kapur

Amirthalingam

George Innocent

Subscribe Now

calculation of interest on partners current account

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA