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Question 29 Chapter 2 of +2-Part-1
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29. (Interest on Drawings/Drawings at beginning, middle and end of each month) A and B are partners in a firm. Their monthly drawings are Rs.2,000 each. Interest on drawings is to be charged @10% each.
Calculate interest on A’s drawings for the year 2016-17 assuming drawings are made
1.In the beginning of every month
2.In the middle of every month
3. At the end of every month.
The solution of Question 29 Chapter 2 of +2 Part-1: –
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 Drawings X Rate of Interest X Period/12 Months
Rate of Interest = 10%
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 | ||||
1. Calculation of interest on A’s Drawings:
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A’s withdrawal at the beginning of every month = 2,000 p.m.
Therefore, total drawings of the year 2,000 x 12 = Rs.24,000.
It means 1st withdrawal has made on 01-04-2016
So, Time left from 1-4-2016 to 1-3-17 is 12 Months
And last withdrawal has made on 1-3-2017
So, Time left from 1-3-2017 to 31-3-2017 is 1 month.
Now, put this time period in the formula
| Period | = | 12 | + | 1 |
| 2 | ||||
| Period | = | 13 | ||
| 2 | ||||
| Period | = | 6.5 |
Total Drawings = 24,000
| Interest on Drawing | = | 24,000 | X | 10 | X | 6.5 |
| 100 | 12 | |||||
| Interest on Drawing | = | 1300/- |
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2. Drawings in the middle of every month
A’s withdrawal at the middle of every month = 2,000 p.m. Therefore, total drawings of the year= Rs.24,000.
It means 1st withdrawal has made on 15-04-2016
So, Time left from 15-4-2016 to 31-3-17 is 11 months and 15 days. = 11.5 months
And last withdrawal has made on 15-3-2017
So, Time left from 15-3-2017 to 31-3-2017 is 15 days = 0.5 month
Now, put this time period in the formula:
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| Period | = | 11.5 | + | 0.5 |
| 2 | ||||
| Period | = | 12 | ||
| 2 | ||||
| Period | = | 6 |
Total Drawings = 24,000
| Interest on Drawing | = | 24,000 | X | 10 | X | 6 |
| 100 | 12 | |||||
| Interest on Drawing | = | 1200/- |
3. Drawings at the end of every month
A’s withdrawal at the end of every month = 2,000 p.m. Therefore, total drawings of the year= Rs.24,000.
It means 1st withdrawal has made on 31-04-2016
So, Time left from 31-4-2016 to 31-3-17 in 11 Months
And last withdrawal has made on 1-3-2017
So, Time left from 31-3-2017 to 31-3-2017 is 0 months.
| Period | = | 11.5 | + | 0 |
| 2 | ||||
| Period | = | 11 | ||
| 2 | ||||
| Period | = | 5 |
| Interest on Drawing | = | 24,000 | X | 10 | X | 5.5 |
| 100 | 12 | |||||
| Interest on Drawing | = | 1,100/- |
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End of Solution
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Chapter-Wise Solution of Usha Publication Accountancy – Part 1 Class 12 – Session 2024-25 as per the PSEB curriculum
Check out Solutions to all questions of the every chapter shown as under. The Solution of Accountancy – Part 1 Class 12 – Session 2024-25 is provided as per the new book published by Usha Publication.
Chapter No. 1 – Accounting Not-for-Profit Organisations (Deleted from the Syllabus)
Chapter No. 2 – Partnership Accounts – I (Introduction)
Chapter No. 3 – Partnership Accounts – II (Goodwill: Nature and Valuation)
Chapter No. 4 – Partnership Accounts – III (Reconstitution of Partnership)
Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
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Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Also, Check out our Comprehensive Chapter-wise solution of Advanced Accountancy Part 1 Class 12 by Unimax Publication
- Chapter No. 1 – Accounts of Non-Profit Organisations (Deleted from the Syllabus)
- Chapter No. 2 – Partnership Accounts – I (Basic Concepts)
- Chapter No. 3 – Partnership Accounts – II (Goodwill)
- Chapter No. 4 – Partnership Accounts – III (Change in Profit Sharing Ratio among Existing Partners)
- Chapter No. 5 – Partnership Accounts – IV (Admission of A Partner)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
Check out Part 2 of both books.
In Class 12th the accountancy has 2 books i.e. Part 1 and Part 2. The Books related to the Part 1 are shown above. but If you want to know more about Part 2, you can check it out from the following links. We have provided the links to both books i.e. Accountancy Part 2 by Usha Publication and Advanced Accountancy Part 2 by Unimax Publication.
1. Accountancy – Part 2 Class 12 – Session 2024-25 By Usha Publication
2. Advanced Accountancy Part 2 Class 12 by Unimax Publication