Q.No.29 | Chapter 2 – Accounting for Partnership Firms: Fundamentals | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 29 Chapter 2 of +2-A

Calculation of Interest on Partner’s Drawings: -

29. Brij and Mohan are partners in a firm. They withdrew 48,000 and 36,000 respectively during the year evenly in the middle of every month. According to the partnership agreement, interest on drawings is to be charged @ 10% p.a.
Calculate interest on drawings of the partners using the appropriate formula

The solution of Question 29 Chapter 2 of +2-A:

Calculation of interest on partner's Drawings
The interest in drawing is calculated on the basis of period i.e. from the date of withdrawal to the last date of the financial year
Interest on Drawing = Total Drawing X Rate of Interest X Period
Rate of Interest = 10%
Period = Period of drawing is not clear. So, it will be treated as during the year (So we will calculate on the basis of 6months)
Brij's Drawing = 48,000
Mohan’s Drawing = 36,000

Interest on Brij's Drawing	=48,000	X	10	X	6
			100		12

Interest on Brij's Drawing =2,400/-

Interest on Mohan’s Drawing	=36,000	X	10	X	6
			100		12

Interest on Mohan’s Drawing =1,800/-

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Also, Check out the solved question of previous Chapters: -

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

• Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
• Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
• Chapter No. 3 – Goodwill: Nature and Valuation
• Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
• Chapter No. 5 – Admission of a Partner
• Chapter No. 6 – Retirement/Death of a Partner
• Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 8 – Company Accounts –  Accounting for Share Capital
• Chapter No. 9 – Company Accounts – Issue of Debentures
• Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

• Chapter No. 1 – Financial Statements of a Company
• Chapter No. 2 – Financial Statement Analysis 
• Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
• Chapter No. 4 – Accounting Ratios
• Chapter No. 5 – Cash Flow Statement

 

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