Question 30 Chapter 2 of +2-Part-1
Table of Contents
30. (Interest on Drawings/ Product Method) During the year ended 31-3-2017, a partner made the following drawings:
April 30 – 2,000
July 1 – 5,000
October 31 – 4,000
March 1 – 3,000
March 31 – 2,000
Calculate interest on drawings when it is charged at @ 10% p.a.
The solution of Question 30 Chapter 2 of +2 Part-1: –
| Calculation of Interest on Partner’s Drawing by Product Method We will do it with the product method because of partner withdrawal a different amount every time. |
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| Date | Amount (A) |
Period Left after (B) |
Product (C=A*B) |
| April 30 | 2,000 | 11 | 22,000 |
| July 1 | 5,000 | 9 | 45,000 |
| October 31 | 4,000 | 5 | 20,000 |
| March 1 | 3,000 | 1 | 3,000 |
| March 31 | 2000 | 0 | 0 |
| Sum of Product | 90,000 | ||
Interest on Drawing = Sum of Product X Rate of Interest X 1/12
| Interest on Drawing | = | 90,000 | X | 10 | X | 1 |
| 100 | 12 | |||||
| Interest on Drawing | = | 750/- |
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Also, Check out the solved question of previous Chapters: –
Usha Publication – Accountancy PSEB (Class 12) – Volume I – Solution
- Chapter No. 1 – Accounting Not for Profit Organisations
- 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)
- Chapter No. 6 – Partnership Accounts – V (Retirement and Death of A Partner)
- Chapter No. 7 – Partnership Accounts – VI (Dissolution of Partnership Firm)
- Chapter No. 8 – Company Accounts (Share Capital)
- Chapter No. 9 – Company Accounts (Issue of Debentures)
- Chapter No. 10 – Company Accounts (Redemption of Debentures)
Usha Publication – Accountancy PSEB (Class 12) – Volume II – Solution
- Chapter No. 1 – Financial Statements of a Company
- Chapter No. 2 – Financial Statement Analysis
- Chapter No. 3 – Tools of Financial Statement Analysis- Comparative and Common Size
- Chapter No. 4 – Ratio Analysis
- Chapter No. 5 – Cash Flow Statement
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
