Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Fundametal Accounting CPT

Save Share

This query is : Resolved

Girish S Khanvilkar (Querist)
Follow

25 March 2010 How to calulate of Interest Drawing

In CPT Course Material Explain
Begining of the Drawing is calculate at 6.5month
& end of month calculate 5.5

please explain above matter

Regards
Girish

shakuntala chhangani

shakuntala chhangani (Expert)
Follow

01 April 2010 Hi Girish, say the drawings are amde at the beginning of each month. it means that the withdrawals will be made on 1st Jan, 1st feb....... 1st Nov and 1st dec.
it meand that partner will hv to pay interest for full 12 months for withdrawal of Jan, 11 months for feb..... 2 months for nov and 1 month for dec. If we take average of the same (12+11+....+2+1/12), we can simply say that on an average partner will hv to pay 6.5 months interest. same is the funda for 5.5 but it starts from 11, 10.....1,0 if the withdrawals are made at the month end.
Regards, CA Shakuntala Chhangani

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