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During the year ended 31st March 2019, Avi, a partner withdrew Rs.10,000 for personal use out of profits on 31st July, 2018. He withdrew goods costing Rs.20,000 (selling price Rs. 28,000) on 1st February, 2019. He also withdrew Rs. 40,000 out of capital on 1st March 2019. Calculate interest on drawings when it is charged @10% p.a for the year ending 31st march 2019.(1)?
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During the year ended 31st March 2019, Avi, a partner withdrew Rs.10,0...



Calculation of Interest on Drawings for the year ending 31st March 2019

Determination of Total Drawings:
- Personal use withdrawal on 31st July 2018: Rs. 10,000
- Goods withdrawal on 1st February 2019: Rs. 20,000
- Capital withdrawal on 1st March 2019: Rs. 40,000
Total Drawings = Rs. 10,000 + Rs. 20,000 + Rs. 40,000 = Rs. 70,000

Calculation of Average Drawings:
- Drawings were made at different times during the year.
- Average Drawings = (Total Drawings / Number of Months) = (Rs. 70,000 / 12) = Rs. 5,833.33

Calculation of Interest on Drawings:
- Rate of Interest = 10% p.a.
- Time for which interest is charged = 12 months
- Interest on Drawings = (Average Drawings) x (Rate of Interest) x (Time)
- Interest on Drawings = Rs. 5,833.33 x 10% x 12 = Rs. 7,000
Therefore, the interest on drawings for the year ending 31st March 2019 is Rs. 7,000.

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During the year ended 31st March 2019, Avi, a partner withdrew Rs.10,000 for personal use out of profits on 31st July, 2018. He withdrew goods costing Rs.20,000 (selling price Rs. 28,000) on 1st February, 2019. He also withdrew Rs. 40,000 out of capital on 1st March 2019. Calculate interest on drawings when it is charged @10% p.a for the year ending 31st march 2019.(1)?
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During the year ended 31st March 2019, Avi, a partner withdrew Rs.10,000 for personal use out of profits on 31st July, 2018. He withdrew goods costing Rs.20,000 (selling price Rs. 28,000) on 1st February, 2019. He also withdrew Rs. 40,000 out of capital on 1st March 2019. Calculate interest on drawings when it is charged @10% p.a for the year ending 31st march 2019.(1)? for UPSC 2024 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about During the year ended 31st March 2019, Avi, a partner withdrew Rs.10,000 for personal use out of profits on 31st July, 2018. He withdrew goods costing Rs.20,000 (selling price Rs. 28,000) on 1st February, 2019. He also withdrew Rs. 40,000 out of capital on 1st March 2019. Calculate interest on drawings when it is charged @10% p.a for the year ending 31st march 2019.(1)? covers all topics & solutions for UPSC 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for During the year ended 31st March 2019, Avi, a partner withdrew Rs.10,000 for personal use out of profits on 31st July, 2018. He withdrew goods costing Rs.20,000 (selling price Rs. 28,000) on 1st February, 2019. He also withdrew Rs. 40,000 out of capital on 1st March 2019. Calculate interest on drawings when it is charged @10% p.a for the year ending 31st march 2019.(1)?.
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