Capital Interest
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
05 August 2010
Dear Sirs/ Madam,
Please guide how to calculate the Interest on Capital to the partners of the firm
On the balance on balance sheet as on 31.03.0000 except current year profit
or
On the daily balance basis
Please explain with example
Thanks & regards,
Please guide how to calculate the Interest on Capital to the partners of the firm
On the balance on balance sheet as on 31.03.0000 except current year profit
or
On the daily balance basis
Please explain with example
Thanks & regards,
Aditya Maheshwari
(Expert)
05 August 2010
It should be on daily balances.
VINOD ARORA
(Expert)
05 August 2010
You have to consider end of day balance and 365/366 days(as may be applicable) in a year and calculate.
Suppose there is a credit on 10th march for 100000 Rs, and the amount is withdrawn on 30th March. you have to calculate interest for 20 days(10th inclusive and 30 exclusive) at applicable rate with denominator being 365(for year 2010).
Suppose there is a credit on 10th march for 100000 Rs, and the amount is withdrawn on 30th March. you have to calculate interest for 20 days(10th inclusive and 30 exclusive) at applicable rate with denominator being 365(for year 2010).
Murtaza I Bhagat
(Expert)
05 August 2010
yes, interest will be calculate on daily basis....as per example given by vinodji..and also when ever partner give capital then from there to at the end calculation as per period of use of captital and if reducing from any partner then calculation create difference.
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