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Calculate the Amount of Interest to Be Charged on Harish’S Drawings for the Year Ending December 31, 2017. - Accountancy

Sum

Harish is a partner in a firm. He withdrew the following amounts during the year 2017 :

 

Rs

February 01

4,000

May 01

10,000

June 30

4,000

October 31

12,000

December 31

 4,000

Interest on drawings is to be charged @ 7.5 % p.a.Calculate the amount of interest to be charged on Harish’s drawings for the year ending December 31, 2017.

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Solution

Calculation of interest on Harish’s drawings

 

Drawings × Period

Product

01 Feb. 17 to 31 Dec. 17

4,000 × 11 =

44,000

01 May 17 to 31 Dec. 17

10,000 ×   8 =

80,000

30 June 17 to 31 Dec. 17

4,000 ×   6 =

24,000

31 Oct. 17 to 31 Dec. 17

12,000×   2 =

24,000

31 Dec. 17 to 31 Dec. 17

4,000 ×   0 =

0

 

Sum of Product

1,72,000

Interest on drawings = 1,72,000 × `7.5/100 xx 1/12` = Rs 1,075

  Is there an error in this question or solution?
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APPEARS IN

TS Grewal Class 12 Accountancy - Double Entry Book Keeping Volume 1
Chapter 2 Accounting for Partnership Firms-Fundamentals
Exercise | Q 24 | Page 104
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