Q.No.30 | Chapter 2 – Accounting for Partnership Firms: Fundamentals | T.S. Grewal 12 Class Book Keeping Part - A - Vol. 1

Question 30 Chapter 2 of +2-A

Calculation of Interest on Partner’s Drawings: -

A and B are partners sharing profits equally. A drew regularly 4,000 at the beginning of every month for six months ended 30th September 2019. Calculate interest on drawings @ 5%p.a. for a period of six months.

The solution of Question 30 Chapter 2 of +2-A:

Calculation of interest on partner's Drawings
If partners withdrawal the same amount of drawing on a regular basis then we can calculate the interest on drawing with help of following formula
Interest on Drawing = Total Drawing X Rate of Interest X Period/12 Months
Rate of Interest = 5%
Period = the period/time will be calculated with the help of following formula: -

Period	=	Time left after 1st withdrawal + Time left after Last withdrawal
		2

Withdrawal at the beginning of every month = 4,000 p. m.
It means 1st withdrawal has made on 01/04/2019
So, Time left from 01/04/2019 to 30/09/2019 is equal to 6 Months
And last withdrawal has made on 01/09/2019
So, Time left from 01/09/2019 to 30/09/2019 is equal to 1 Month only.
Now, put this time period in the formula

Period	=	6+1
		2

Period	=	7
		2

Period

=

3.5

A’s total Drawing

=

4,000

x

6

=24,000

Interest on A’s Drawing	=	24,000	X	5	X	3.5
				100		12

Interest on A’s Drawing = 350/-

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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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