Question 32 Chapter 2 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 32 Chapter 2 of +2-A

Question 32 Chapter 2 of +2-A

Calculation of Interest on Partner’s Drawings: –

32. A and B are partners sharing profits equally. A drew regularly 4,000 at the end 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 32 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 = 6%
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 end of every month = 4,000 p.m.
It means 1st withdrawal has made on 30/04/2019
So, Time left from 30/04/2019 to 30/09/2019
are 5 Months
And last withdrawal has made on 30/09/2019
So, Time left from 30/09/2019 to 30/09/2019
are 0 Month and 0 day
Now, put this time period in the formula

Period = 5 + 0
2
Period = 5
2
Period = 2.5
total Drawing = 4,000  6

=24,000 Multiplied by 6 because a number of withdrawal in 6 months will be 6.

Interest on A’s Drawing = 24,000 X 5 X 2.5
100 12

Interest on A’s Drawing =250/-each

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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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 32 Chapter 2 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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