Question

Rakesh and Roshan are partners, sharing profits in the ratio of 3:2 with capitals of Rs 40,000 and Rs 30,000, respectively. They withdrew from the firm the following amounts, for their personal use:

Rakesh	Month	Rs
	May 31, 2016	600
	June 30, 2016	500
	August 31, 2016	1,000
	November 1, 2016	400
	December 31, 2016	1,500
	January 31, 2017	300
	March 01, 2017	700
Rohan	At the beginning of each month	400

Interest is to be charged @ 6% p.a. Calculate interest on drawings, assuming that book of accounts are closed on March 31, 2017, every year.

Answer 1

Rakesh’s Interest on Drawings

	Drawings × Period	Product
31 May 2016 to 31 March 2017	600 × 10 =	6,000
30 June 2016 to 31 March 2017	500 × 9 =	4,500
31 August 2016 to 31 March 2017	1,000 × 7 =	7,000
1 November 2016 to 31 March 2017	400 × 5 =	2,000
31 December 2016 to 31 March 2017	1,500 × 3 =	4,500
31 January 2017 to 31 March 2017	300 × 2 =	6,00
01 March 2017 to 31 March 2017	700 × 1 =	700
	Sum of Product	25,300

Interest = Sum of Product ×

=

= Rs 126.5

Interest on Rohan’s Capital

= Total Drawing ×

= Rs 156