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Calculate Interest on Drawings Based on the Assumption that the Amounts Were Withdrawn Evenly, Throughout the Year. - Accountancy

Sum

Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged @ 10% p.a. Their drawings during 2017 were Rs 24,000 and Rs 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year.

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Solution

Interest on Drawings = Drawings × `"Rate"/100`

Amit = 24,000 × `10/100 xx 6/12` = Rs 1,200

Bhola = 16,000 × `10/100 xx 6/12` = Rs 800

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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 23 | Page 104
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