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Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest on drawings is fixed @ 6 % (Books are closed on 31st March) . The amount of interest wil be . [½ ×8=4] i) RS 600 ii) RS 450 iii) RS 350 iv) No interest will be charged.?
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Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest o...
Calculation of Interest on Drawings
Calculation Method: The interest on drawings is calculated using the following formula:
Interest on Drawings = Drawings x Interest Rate x Time
Here, the drawings are Rs. 10,000, the interest rate is 6%, and the time period is from 1st July 2019 to 31st March 2020, which is 9 months.
Calculation:
Interest on Drawings = 10,000 x 6% x 9/12
Interest on Drawings = 450
Therefore, the amount of interest will be RS 450. Option (ii) is correct.
Explanation
When a partner withdraws money from the partnership firm, it is called drawings. Interest on drawings is the interest charged on the amount withdrawn by the partner. The interest on drawings is charged to discourage the partners from withdrawing money frequently from the partnership.
In this case, the partner has withdrawn Rs. 10,000 on 1st July 2019, and the books of accounts are closed on 31st March. The interest on drawings is fixed at 6% per annum. Therefore, the interest on drawings will be calculated for nine months, which is the time period from 1st July 2019 to 31st March 2020.
The calculation of interest on drawings is done using the formula mentioned above. In this case, the interest on drawings will be RS 450. Therefore, option (ii) is correct.
Conclusion
Interest on drawings is an important concept in partnership accounting. It is essential to calculate the interest on drawings to ensure accurate accounting of partnership transactions. In this case, the interest on drawings is calculated to be RS 450.
Calculation Method: The interest on drawings is calculated using the following formula:
Interest on Drawings = Drawings x Interest Rate x Time
Here, the drawings are Rs. 10,000, the interest rate is 6%, and the time period is from 1st July 2019 to 31st March 2020, which is 9 months.
Calculation:
Interest on Drawings = 10,000 x 6% x 9/12
Interest on Drawings = 450
Therefore, the amount of interest will be RS 450. Option (ii) is correct.
Explanation
When a partner withdraws money from the partnership firm, it is called drawings. Interest on drawings is the interest charged on the amount withdrawn by the partner. The interest on drawings is charged to discourage the partners from withdrawing money frequently from the partnership.
In this case, the partner has withdrawn Rs. 10,000 on 1st July 2019, and the books of accounts are closed on 31st March. The interest on drawings is fixed at 6% per annum. Therefore, the interest on drawings will be calculated for nine months, which is the time period from 1st July 2019 to 31st March 2020.
The calculation of interest on drawings is done using the formula mentioned above. In this case, the interest on drawings will be RS 450. Therefore, option (ii) is correct.
Conclusion
Interest on drawings is an important concept in partnership accounting. It is essential to calculate the interest on drawings to ensure accurate accounting of partnership transactions. In this case, the interest on drawings is calculated to be RS 450.
Community Answer
Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest o...
The time difference between 1st july to 31st march=9months
therefore interst on drawings =10000×9/12×6/100
the answer will ₹450...
therefore interst on drawings =10000×9/12×6/100
the answer will ₹450...
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Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest on drawings is fixed @ 6 % (Books are closed on 31st March) . The amount of interest wil be . [½ ×8=4] i) RS 600 ii) RS 450 iii) RS 350 iv) No interest will be charged.?
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Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest on drawings is fixed @ 6 % (Books are closed on 31st March) . The amount of interest wil be . [½ ×8=4] i) RS 600 ii) RS 450 iii) RS 350 iv) No interest will be charged.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest on drawings is fixed @ 6 % (Books are closed on 31st March) . The amount of interest wil be . [½ ×8=4] i) RS 600 ii) RS 450 iii) RS 350 iv) No interest will be charged.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest on drawings is fixed @ 6 % (Books are closed on 31st March) . The amount of interest wil be . [½ ×8=4] i) RS 600 ii) RS 450 iii) RS 350 iv) No interest will be charged.?.
Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest on drawings is fixed @ 6 % (Books are closed on 31st March) . The amount of interest wil be . [½ ×8=4] i) RS 600 ii) RS 450 iii) RS 350 iv) No interest will be charged.? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest on drawings is fixed @ 6 % (Books are closed on 31st March) . The amount of interest wil be . [½ ×8=4] i) RS 600 ii) RS 450 iii) RS 350 iv) No interest will be charged.? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Money withdrawn by a partner on 1st July 2019 RS 10,000 and interest on drawings is fixed @ 6 % (Books are closed on 31st March) . The amount of interest wil be . [½ ×8=4] i) RS 600 ii) RS 450 iii) RS 350 iv) No interest will be charged.?.
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