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Amit and bhola are partners in a firm. they share profit in the ratio of 3:2 as per their partnership agreement. ,interest on drawings is to be charged @ 10 percent p. a their drawings during 2017 were rs. 24000 and rs. 16000 respectively. calculate interest on drawings based on the assumption tht the amount were withdrawn evenly throughout the Year
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Most Upvoted Answer
Amit and bhola are partners in a firm. they share profit in the rati...
IOD of Amit = 24000 ×10/100×6/12
=1200

IOD of Bhola = 16000×10/100×6/12
=800
Community Answer
Amit and bhola are partners in a firm. they share profit in the rati...
Introduction
In this scenario, Amit and Bhola are partners in a firm sharing profits in a ratio of 3:2. They made drawings during the year 2017, and interest on their drawings will be calculated at 10% per annum.
Drawings Details
- Amit's Drawings: Rs. 24,000
- Bhola's Drawings: Rs. 16,000
Calculation of Interest on Drawings
Since the drawings are withdrawn evenly throughout the year, we will consider the average time for which the amounts were withdrawn.
- Amit's Drawings:
- Total Drawings: Rs. 24,000
- Average Time: 6 months (since withdrawn evenly throughout the year)
- Interest Calculation:
- Interest = Principal × Rate × Time
- Interest = 24000 × 10% × 6/12
- Interest = 24000 × 0.10 × 0.5 = Rs. 1,200
- Bhola's Drawings:
- Total Drawings: Rs. 16,000
- Average Time: 6 months
- Interest Calculation:
- Interest = Principal × Rate × Time
- Interest = 16000 × 10% × 6/12
- Interest = 16000 × 0.10 × 0.5 = Rs. 800
Total Interest on Drawings
- Amit's Interest: Rs. 1,200
- Bhola's Interest: Rs. 800
Conclusion
- Total Interest on Drawings:
- Amit: Rs. 1,200
- Bhola: Rs. 800
- Combined Total Interest: Rs. 2,000
This detailed calculation helps in understanding how interest on drawings is computed based on the partnership agreement and the specifics of the drawings made by Amit and Bhola.
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Amit and bhola are partners in a firm. they share profit in the ratio of 3:2 as per their partnership agreement. ,interest on drawings is to be charged @ 10 percent p. a their drawings during 2017 were rs. 24000 and rs. 16000 respectively. calculate interest on drawings based on the assumption tht the amount were withdrawn evenly throughout the Year Related: NCERT Solution - Accounting for Partnership : Basic Concepts - 2?
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