Partnership firm - interest on partner's capital

This query is : Resolved

SANTANU SAHA (Querist)
Follow

25 March 2015 Sir/Madam,

In calculation of interest on the capital of partners in a firm, should the drawings made during the year be deducted?

Would the calculation be as follows:

First Case:
-----------
Opening Capital =Rs. 12,25,000/-
Additional Capital(Introduced during the year)= Rs. 10,00,000/-
Drawings (during the year)= Rs. 4,00,000/-
Rate of interest = 12% p.a

Intt. on Capital = (12,25,000 + 10,00,000 - 4,00,000)*12/100 = Rs. 2,19,000/-

Second Case: (No Additional Capital):
-------------------------------------

Intt. on Capital = (12,25,000-4,00,000)*12/100= Rs. 99,000/-

Please advise whether the above calculations are correct or wrong u/s 40b.

Regards,
Santanu.

SANTANU SAHA

SANTANU SAHA (Querist)
Follow

27 March 2015 No one has replied to my querry .........

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
Follow

09 August 2024 https://docs.google.com/document/d/1rXJan45Q4qX9nY-_VjdyI8fgLwd66vuOqxPJUodFLZA/edit?usp=sharing

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

Aakash Kumar

Devendra Singh Jyala

MAYUR

Sivakumar

DHRUV PATEL

Subscribe Now

Partnership firm - interest on partner's capital

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