hi in a partnership business if provided in the partnership deed that interest is to be charged on drawings at 6% per annum . In this partnership firm there are 2 partners x and y. They withdrew Rs. 8000 and 10000 respectively . How interest on drawings is to be calculated and wat should be the answer ....? But in book it is given as 240 and 300/- respectively. The business was started on 1st jan 05 and Accounting year is from jan - Dec . ?.
interest on drawing is charged on an avg basis i.e. 8000*6% for 6 months
when nothing is mentioned in the question then interest is calculated on the basis of given rate for 6 months
Yes Rocky very much in agreement with what Dhirendra Sir has mentioned.
YES,WHEN DATE OF DRAWING NOT MENTIONED IN THE QUESTION THAN INTT. ON DRAWING SHOULD BE CALULATED FOR SIX MONTH(AVERAGE BASIS).
Murali and Sumeet Chartered Accountant
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