Question 32 Chapter 2 of Class 12 Part – 1
32. M and K share profits equally. Their drawings for the year ending on 31st March, 2018 were as under:
| M | Rs. | K | Rs. |
| 1st June., 2017 | 500 | 1st July, 2017 | 700 |
| 1st Oct., 2017 | 500 | 1st Nov., 2017 | 300 |
| 1st Dec, 2017 | 400 | 1st Dec, 2017 | 700 |
| 1st Feb, 2018 | 300 | 1st Mar., 2018 | 800 |
Calculate interest on drawings @6% pa. for the year ended on 31st March, 2018
The solution of Question 32 Chapter 2 of Class 12 Part – 1: –
(i)
Product Method
| Date |
Amount | Periods (months) |
Product ₹ (Amount X Month) |
| 1st June., 2017 | 700 | 10 | 5,000 |
| 1st Oct., 2017 | 300 | 6 | 3,000 |
| 1st Dec, 2017 | 700 | 4 | 1,600 |
| 1st Feb, 2018 | 800 | 2 | 600 |
| Total of Products | 10,200 |
Interest on Drawings= Total of Products ×rate/100×1/12
= 10,200 ×6/100×1/12 = Rs. 51
Product Method
| Date |
Amount | Periods (months) | Product ₹ (Amount X months) |
| 1st July, 2017 | 10,000 | 9 | 6,300 |
| 1st Nov., 2017 | 8,000 | 5 | 1,500 |
| 1st Dec, 2017 | 15,000 | 4 | 2,800 |
| 1st Mar., 2018 | 20,000 | 0 | 0 |
| Total of Products | 10,600 |
Interest on Drawings= Total of Products ×rate/100×1/12
= 3,60,000 ×6/100×1/12 = Rs. 53
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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)
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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
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