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Gupta is a partner in a firm. he drew regularly rupees 800 At the beginning of every month for the sir months ending 31st march 2018. calculate interest on the drawing at 15%p.a.
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Gupta is a partner in a firm. he drew regularly rupees 800 At the begi...
Calculation of Interest on Drawing
Given:
Amount of drawing = Rs. 800 per month
Duration of drawing = 6 months
Rate of interest = 15% p.a.
Formula:
Interest on drawings = (Amount of drawing x Duration of drawing x Rate of interest) / (12 x 100)
Calculation:
Interest on drawings = (800 x 6 x 15) / (12 x 100)
= Rs. 720
Hence, the interest on drawings is Rs. 720 for the six months ending 31st March 2018.
Explanation:
- The question is related to the calculation of interest on drawings of a partner in a firm.
- Drawing is the amount withdrawn by a partner from the business for personal use.
- In this case, the partner has drawn Rs. 800 at the beginning of every month for six months.
- The interest on drawings is calculated at the rate of 15% p.a. for six months ending on 31st March 2018.
- The formula used for the calculation is (Amount of drawing x Duration of drawing x Rate of interest) / (12 x 100).
- The amount of drawing is multiplied by the duration of drawing and the rate of interest, and then divided by 12 and 100 to get the interest on drawings.
- In this case, the interest on drawings is Rs. 720 for the six months ending 31st March 2018.
- This interest on drawings is an expense for the firm and is deducted from the profits of the firm before calculating the profit share of the partners.
Given:
Amount of drawing = Rs. 800 per month
Duration of drawing = 6 months
Rate of interest = 15% p.a.
Formula:
Interest on drawings = (Amount of drawing x Duration of drawing x Rate of interest) / (12 x 100)
Calculation:
Interest on drawings = (800 x 6 x 15) / (12 x 100)
= Rs. 720
Hence, the interest on drawings is Rs. 720 for the six months ending 31st March 2018.
Explanation:
- The question is related to the calculation of interest on drawings of a partner in a firm.
- Drawing is the amount withdrawn by a partner from the business for personal use.
- In this case, the partner has drawn Rs. 800 at the beginning of every month for six months.
- The interest on drawings is calculated at the rate of 15% p.a. for six months ending on 31st March 2018.
- The formula used for the calculation is (Amount of drawing x Duration of drawing x Rate of interest) / (12 x 100).
- The amount of drawing is multiplied by the duration of drawing and the rate of interest, and then divided by 12 and 100 to get the interest on drawings.
- In this case, the interest on drawings is Rs. 720 for the six months ending 31st March 2018.
- This interest on drawings is an expense for the firm and is deducted from the profits of the firm before calculating the profit share of the partners.
Community Answer
Gupta is a partner in a firm. he drew regularly rupees 800 At the begi...
Each year drawing = 800rs. for 6 months
Total drawing = 800 * 6 = 4800rs
Rate = 15% p.a.
Time(for the drawing at the beginning of the month) = (no. of months+1)/2 = (6+1)/2 = 3.5
Interest on drawing = Total drawing * Rate/100 * Time/12 = (4800*15*3.5)/(100*12) = 210
So Interest on Drawing would be 210rs.
Total drawing = 800 * 6 = 4800rs
Rate = 15% p.a.
Time(for the drawing at the beginning of the month) = (no. of months+1)/2 = (6+1)/2 = 3.5
Interest on drawing = Total drawing * Rate/100 * Time/12 = (4800*15*3.5)/(100*12) = 210
So Interest on Drawing would be 210rs.
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Gupta is a partner in a firm. he drew regularly rupees 800 At the beginning of every month for the sir months ending 31st march 2018. calculate interest on the drawing at 15%p.a. Related: NCERT Solution - Accounting for Not-for-Profit Organisation (Part - 1)?
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