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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Piyush, Harmesh and Atul are partners. Each partner regularly withdrew ₹20,000 per month as given below: (a) Piyush withdrew in the beginning of the month; (b) Harmesh withdrew in the middle of the month; and (c) Atul withdrew at the end of the month. Interest on drawings charged for the year ended 31st March, 2025 was ₹15,600, ₹14,400 and ₹13,200 respectively. Determine the rate of interest charged on drawings.
Total drawings of each partner = ₹20,000 × 12 = ₹2,40,000. Let the rate be x% p.a.
Piyush (beginning, average 6.5 months): ₹2,40,000 × x/100 × 6.5/12 = ₹15,600 → 1,300x = 15,600 → x = 12%.
Harmesh (middle, average 6 months): ₹2,40,000 × x/100 × 6/12 = ₹14,400 → 1,200x = 14,400 → x = 12%.
Atul (end, average 5.5 months): ₹2,40,000 × x/100 × 5.5/12 = ₹13,200 → 1,100x = 13,200 → x = 12%.
The rate of interest charged on drawings is 12% p.a.
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 1 Q.46 - Accounting for Partnership Firm Fundamentals", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 1 - Accounting for Partnership Firm – Fundamentals.
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