Interest on drawings, when dates of drawings are not given.

A &B are partners. Tthey drew for private use Rs.6000 and Rs.4000 respectively during the year. Interest is chargeable @ 6% p.a. on drawings. Calculate the amount of interest on drawings.

asked May 9, 2016 in Partnership-Fundamentals by PARDEEP (12 points) 397 views

1 Answer

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When the  date/dates of drawings  is/are not given, then we assume that the amount of drawings is withdrawn evenly throughout the year and charge interest on totak drawubgs for a period of six months.  So in the given question, amounts withdrawn by each partner is given but when and how much was withdrawn is not given, hence will will charge interest for six months only.

Interest on Drawings (A) (6000 x 6/100 x 6/12) = Rs.180

Interest on Drawings (B) 4000 x 6/100 x 6/12) =  Rs.120
answered May 9, 2016 by jbsclasses (3,971 points)