Advertisements
Advertisements
Question
Santhosh is a partner in a partnership firm. As per the partnership deed, interest on drawings is charged at 6% per annum. During the year ended 31st December, 2018 he withdrew as follows:
| Date | ₹ |
| February 1 | 2,000 |
| May 1 | 10,000 |
| July 1 | 4,000 |
| October 1 | 6,000 |
Calculate the amount of interest on drawings by using the product method.
Sum
Advertisements
Solution
| Date of Drawings | Amount | Period | Product |
| Feb 1 | 2,000 | 11 | 22,000 |
| May 1 | 10,000 | 8 | 80,000 |
| July 1 | 4,000 | 6 | 24,000 |
| Oct 1 | 6,000 | 3 | 18,000 |
| 1,44,000 |
Interest on drawings = `"Product" xx "Rate of interest" xx 1/12`
= `1,44,000 xx 6/100 xx 1/12`
= ₹ 720
shaalaa.com
Is there an error in this question or solution?
