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15.Chaithanya and Sandra are partners in a firm, sharing profits and losses equally. During the financial year 2017-18, Sandra withdraw Rs 20,000 quarterly on the beginning of each quarter. Find out the interest on drawings @ 8% p.a.?
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15.Chaithanya and Sandra are partners in a firm, sharing profits and l...
Calculation of Interest on Drawings
Calculation of Average Drawings
Average Drawings = (Q1 + Q2 + Q3 + Q4)/4
= (20,000 + 20,000 + 20,000 + 20,000)/4
= Rs 20,000
Calculation of Interest on Drawings
Interest on Drawings = Average Drawings x Rate of Interest
= 20,000 x 8%
= Rs 1,600
Therefore, the Interest on Drawings for Sandra is Rs 1,600 for the financial year 2017-18.
Explanation
Interest on Drawings is calculated when partners withdraw money from the firm's capital account for their personal use. In this case, Sandra withdrew Rs 20,000 quarterly on the beginning of each quarter. To calculate the Interest on Drawings, we first need to calculate the Average Drawings by dividing the total drawings by the number of quarters. Once we have the Average Drawings, we can multiply it by the Rate of Interest to get the Interest on Drawings. In this case, the Rate of Interest is 8% p.a. and the Average Drawings is Rs 20,000. Therefore, the Interest on Drawings for Sandra is Rs 1,600 for the financial year 2017-18.
- Partner’s Details: Chaithanya and Sandra
- Profit/Loss Share: Equally
- Financial Year: 2017-18
- Withdrawal by Sandra: Rs 20,000 quarterly on the beginning of each quarter
- Rate of Interest: 8% p.a.
Calculation of Average Drawings
- Q1 Drawings: Rs 20,000
- Q2 Drawings: Rs 20,000
- Q3 Drawings: Rs 20,000
- Q4 Drawings: Rs 20,000
Average Drawings = (Q1 + Q2 + Q3 + Q4)/4
= (20,000 + 20,000 + 20,000 + 20,000)/4
= Rs 20,000
Calculation of Interest on Drawings
Interest on Drawings = Average Drawings x Rate of Interest
= 20,000 x 8%
= Rs 1,600
Therefore, the Interest on Drawings for Sandra is Rs 1,600 for the financial year 2017-18.
Explanation
Interest on Drawings is calculated when partners withdraw money from the firm's capital account for their personal use. In this case, Sandra withdrew Rs 20,000 quarterly on the beginning of each quarter. To calculate the Interest on Drawings, we first need to calculate the Average Drawings by dividing the total drawings by the number of quarters. Once we have the Average Drawings, we can multiply it by the Rate of Interest to get the Interest on Drawings. In this case, the Rate of Interest is 8% p.a. and the Average Drawings is Rs 20,000. Therefore, the Interest on Drawings for Sandra is Rs 1,600 for the financial year 2017-18.
Community Answer
15.Chaithanya and Sandra are partners in a firm, sharing profits and l...
Interest on drawings will be 8000
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15.Chaithanya and Sandra are partners in a firm, sharing profits and losses equally. During the financial year 2017-18, Sandra withdraw Rs 20,000 quarterly on the beginning of each quarter. Find out the interest on drawings @ 8% p.a.?
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15.Chaithanya and Sandra are partners in a firm, sharing profits and losses equally. During the financial year 2017-18, Sandra withdraw Rs 20,000 quarterly on the beginning of each quarter. Find out the interest on drawings @ 8% p.a.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about 15.Chaithanya and Sandra are partners in a firm, sharing profits and losses equally. During the financial year 2017-18, Sandra withdraw Rs 20,000 quarterly on the beginning of each quarter. Find out the interest on drawings @ 8% p.a.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 15.Chaithanya and Sandra are partners in a firm, sharing profits and losses equally. During the financial year 2017-18, Sandra withdraw Rs 20,000 quarterly on the beginning of each quarter. Find out the interest on drawings @ 8% p.a.?.
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