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A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will be
- a)Rs. 650
- b)Rs. 975
- c)Rs. 900
- d)Rs. 1,800
Correct answer is option 'B'. Can you explain this answer?
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A and B are partners in a firm. During the year 2009, A withdrew Rs.1,...
Solution:
Calculation of interest on drawings:
A withdrew Rs.1,000 p.m. for 12 months = Rs.12,000
B withdrew Rs.500 p.m. for 12 months = Rs.6,000
Total drawings = Rs.18,000
Interest on drawings @ 10% p.a. = 10/100 * Rs.18,000 = Rs.1,800
Calculation of interest on A and B's capital:
Let A's capital in the beginning be x
B's capital in the beginning be y
Total capital = x + y
As there is no information about the capital investments of A and B, we assume that their capitals are equal.
Therefore, x = y
Total capital = 2x
The average capital for the year = Total capital/Number of months
= 2x/12
= x/6
Interest on capital @ 10% p.a. = 10/100 * x/6
= x/60
Calculation of share of profit:
Let the profit for the year be Rs.P
A's share of profit = (x/60) + (P - 12,000 - (1,800/2))
B's share of profit = (x/60) + (P - 6,000 - (1,800/2))
We assume that the profits are equally shared by A and B.
Therefore, (x/60) + (P - 12,000 - (1,800/2)) = (x/60) + (P - 6,000 - (1,800/2))
Solving, we get P = Rs.39,000
Calculation of interest on drawings:
Interest on drawings = 10/100 * Rs.18,000
= Rs.1,800/2
= Rs.900
Therefore, option (c) Rs.900 is the correct answer.
Calculation of interest on drawings:
A withdrew Rs.1,000 p.m. for 12 months = Rs.12,000
B withdrew Rs.500 p.m. for 12 months = Rs.6,000
Total drawings = Rs.18,000
Interest on drawings @ 10% p.a. = 10/100 * Rs.18,000 = Rs.1,800
Calculation of interest on A and B's capital:
Let A's capital in the beginning be x
B's capital in the beginning be y
Total capital = x + y
As there is no information about the capital investments of A and B, we assume that their capitals are equal.
Therefore, x = y
Total capital = 2x
The average capital for the year = Total capital/Number of months
= 2x/12
= x/6
Interest on capital @ 10% p.a. = 10/100 * x/6
= x/60
Calculation of share of profit:
Let the profit for the year be Rs.P
A's share of profit = (x/60) + (P - 12,000 - (1,800/2))
B's share of profit = (x/60) + (P - 6,000 - (1,800/2))
We assume that the profits are equally shared by A and B.
Therefore, (x/60) + (P - 12,000 - (1,800/2)) = (x/60) + (P - 6,000 - (1,800/2))
Solving, we get P = Rs.39,000
Calculation of interest on drawings:
Interest on drawings = 10/100 * Rs.18,000
= Rs.1,800/2
= Rs.900
Therefore, option (c) Rs.900 is the correct answer.
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A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer?
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A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer?.
A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer? for CA CPT 2024 is part of CA CPT preparation. The Question and answers have been prepared according to the CA CPT exam syllabus. Information about A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA CPT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer?.
Solutions for A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA CPT.
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A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer?, a detailed solution for A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A and B are partners in a firm. During the year 2009, A withdrew Rs.1,000 p.m. and B withdraw Rs.500 p.m. on the first day of each month for personal use. Interest on drawings is to be charged @ 10% p.a. The interest on drawings will bea)Rs. 650b)Rs. 975c)Rs. 900d)Rs. 1,800Correct answer is option 'B'. Can you explain this answer? tests, examples and also practice CA CPT tests.
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