Question

Munna and Sonu were partners in a firm sharing profits and losses in the ratio of 4 : 1. Their fixed capitals were ₹ 40,00,000 and ₹ 30,00,000 respectively. During the year ended 31^st March, 2025, Munna withdrew ₹ 50,000 for personal use. Interest on drawings was to be charged @ 6% p.a. The journal entry for charging interest on Munna’s drawings will be:

Options

• Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Interest on Drawings A/c   ...Dr.	1,500
  To Munna’s Capital A/c		1,500

• Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Munna’s Capital A/с   ...Dr.	1,500
  To Interest on Drawings A/с		1,500

• Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Interest on Drawings A/c   ...Dr.	1,500
  To Munna’s Current A/с		1,500

• Particulars	Dr. Amount (₹)	Cr. Amount (₹)
  Munna’s Current A/c   ...Dr.	1,500
  To Interest on Drawings A/c		1,500

Answer 1

Particulars	Dr. Amount (₹)	Cr. Amount (₹)
Munna’s Current A/c   ...Dr.	1,500
To Interest on Drawings A/c		1,500

Explanation:

Total Drawings: ₹ 50,000

Rate of Interest: 6% p.a.

Time Period: Since the specific date of withdrawal is not mentioned, interest is calculated for an average period of 6 months.

Interest on Drawings = `50,000 xx 6/100 xx 6/12`

= 50,000 × 0.06 × 0.5

= 1,500