Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio 2 : 1 with capitals Rs. 5,00,000 and Rs. 4,00,000 respectively. Kanika withdrew the following amounts during the year to pay the hostel expenses of her son:
1st April Rs. 10,000
1st June Rs. 9,000
1st November Rs. 14,000
1st December Rs. 5,000
Gautam withdrew Rs. 15,000 on the first day of April, July; October and January to pay rent for the accommodation of his family. He also paid Rs. 20,000 per month as rent for the office of partnership which was in a nearby shopping complex.
Calculate interest on drawings @ 6% p.a.

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Solution

1. Calculation of interest on Kanika's drawings:

(a) Date of withdrawal- 1st April
Amount withdrawn= 10000
Number of months= 12
Total amount of drawings= 1000012
= 120000
(b) Date of withdrawal- 1st June
Amount withdrawn= 9000
Number of months= 10
Total amount of drawings= 900010
= 90000
(c) Date of withdrawal- 1st November
Amount withdrawn= 14000
Number of months= 5
Total amount of drawings= 140005
= 70000
(d) Date of withdrawal- 1st December
Amount withdrawn= 5000
Number of months= 4
Total amount of drawings= 50004
= 20000
Hence, Total amount of drawings= 120000+90000+70000+20000
= 300000
Interest on drawings= 300000* 6/100* 1/12
= 1500

2. Calculation of interest on Gautam's drawings:

Gautam withdrew 15000 at the beginning of every quarter, interest on drawings will be calculated for a period of 7.5 months.
Interest on drawings= [150004] 7.5/12 * 6/100
= 2250

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Similar questions

Q. Kanika and Gautam are partners doing a dry cleaning business in Lucknow, sharing profits in the ratio 2 : 1 with capitals ₹ 5,00,000 and ₹ 4,00,000 respectively. Kanika withdrew the following amounts during the year to pay the hostel expenses of her son:

1st April	₹ 10,000
1st June	₹ 9,000
1st November	₹ 14,000
1st December	₹ 5,000

Gautam withdrew ₹ 15,000 on the first day of April, July, October and January to pay rent for the accommodation of his family. He also paid ₹ 20,000 per month as rent for the office of partnership which was in a nearby shopping complex.
Calculate interest on drawings @ 6% p.a.

1st April	₹ 10,000
1st June	₹ 9,000
1st November	₹ 14,000
1st December	₹ 5,000

A

and

B

started business on 1st April, 2017 with capitals of

R s . 6, 00, 000

and

R s . 4, 00, 000

respectively During the year, A introduced

R s .1, 00, 000

to the firm as additional capital on 1st October, 2017. They withdrew

R s .50, 000

per month for household expenses against profits. Interest on capital is to be allowed @

10 %

per annum. Calculate interest payable to

A

and

B

for the year ended 31st March, 2018.

P, Q and R are in partnership sharing profits and losses in the ratio of 3:2:1. Their capitals on 1st April, 2014 were P Rs 60,000; Q Rs 30,000; R Rs 15,000. Partners have decided that their capital will carry interest @ 5% p.a. Q further introduces Rs 20,000 on 1st July,2014 and withdrew Rs 5,000 on 1st December, 2014, whereas R introduces Rs 10,000 on 15th May, 2014; Rs 7,000 on 30th September, 2014 and withdrew Rs 15,000 on 1st February, 2015. Work out the interest on capital credited to each capital credited to each partner.

Q. Ram & Rahim partners sharing profits & losses in the ratio of their effective capital. They had Rs. 2,00,000 and Rs 1,20,000 respectively in their capital accounts as on 1st January, 2012. Ram introduced a further capital if Rs 20,000 on 1st April, 2012 and another Rs 10,000 on 1st July, 2012. On 30th September, 2012 Ram withdrew Rs 80,000. On 1st July, 2012, Rahim introduced further capital of Rs 60,000. Calculate the profit sharing ratio of Ram & Rahim.

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