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A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months.
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A and B are partners sharing profits equally. A drew regularly ₹4000 i...
Calculation of Interest on Drawings for A
Given details:
- A and B are partners sharing profits equally
- A drew regularly ₹4000 in the beginning of every month for six months ended 30th September 2019
- Interest rate = 5% per annum
Calculation:
- Total drawings by A in 6 months = ₹4000 x 6 = ₹24,000
- Time period for which interest is to be calculated = 6 months
- Simple interest on drawings for 6 months = (24000 x 5 x 6) / (100 x 12) = ₹600
- As A and B are partners sharing profits equally, A's share of interest on drawings = ₹600 / 2 = ₹300
Answer:
Interest on drawings for A for the period of six months is ₹300.
Explanation:
- The question is related to the topic of "Accounting for Partnership : Basic Concepts" from NCERT Solution (Part - 1).
- The calculation of interest on drawings is important in partnership accounting as it helps in determining the correct share of profits for each partner.
- A and B are equal partners, which means they share profits equally. Therefore, A's share of interest on drawings is half of the total interest calculated.
- The interest rate is given as 5% per annum, but as the time period is only 6 months, the interest is calculated on a simple interest basis.
- The total drawings by A in 6 months are calculated by multiplying the monthly amount by the number of months.
- The formula for calculating simple interest is used to calculate the interest on drawings for 6 months.
- Finally, A's share of interest on drawings is calculated by dividing the total interest by 2, as A and B share profits equally.
Given details:
- A and B are partners sharing profits equally
- A drew regularly ₹4000 in the beginning of every month for six months ended 30th September 2019
- Interest rate = 5% per annum
Calculation:
- Total drawings by A in 6 months = ₹4000 x 6 = ₹24,000
- Time period for which interest is to be calculated = 6 months
- Simple interest on drawings for 6 months = (24000 x 5 x 6) / (100 x 12) = ₹600
- As A and B are partners sharing profits equally, A's share of interest on drawings = ₹600 / 2 = ₹300
Answer:
Interest on drawings for A for the period of six months is ₹300.
Explanation:
- The question is related to the topic of "Accounting for Partnership : Basic Concepts" from NCERT Solution (Part - 1).
- The calculation of interest on drawings is important in partnership accounting as it helps in determining the correct share of profits for each partner.
- A and B are equal partners, which means they share profits equally. Therefore, A's share of interest on drawings is half of the total interest calculated.
- The interest rate is given as 5% per annum, but as the time period is only 6 months, the interest is calculated on a simple interest basis.
- The total drawings by A in 6 months are calculated by multiplying the monthly amount by the number of months.
- The formula for calculating simple interest is used to calculate the interest on drawings for 6 months.
- Finally, A's share of interest on drawings is calculated by dividing the total interest by 2, as A and B share profits equally.
Community Answer
A and B are partners sharing profits equally. A drew regularly ₹4000 i...
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A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts?
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A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts?.
A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts?.
Solutions for A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? in English & in Hindi are available as part of our courses for Commerce.
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A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts?, a detailed solution for A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? has been provided alongside types of A and B are partners sharing profits equally. A drew regularly ₹4000 in the beginning of every month for six months ended 30th September, 2019. calculate interest on drawings at 5% per annum for the period of six months. Related: NCERT Solution (Part - 1) - Accounting for Partnership : Basic Concepts? theory, EduRev gives you an
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