# 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.

#### 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?

#### 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