CameraIcon

SearchIcon

MyQuestionIcon

6

You visited us 6 times! Enjoying our articles? Unlock Full Access!

Interest on Drawings-Withdrawn in Unequal Intervals

Name the meth...

Question

Name the method of calculating Interest on Drawings of the partner if different amounts are withdrawn on different dates.

Open in App

Solution

When different amounts are withdrawn on different dates,then PRODUCT METHOD of calculating interest on drawings is used.
Under this method, amount of each drawing is multiplied with its time duration. After that all the products are added together and interest is calculated on the total of products for a month.

Interest on Drawings = Total productsrate of interest1/12

Suggest Corrections

thumbs-up

0

Similar questions

Q. If a fixed amount is withdrawn on the middle of every month, the interest on the total amount of drawings shall be calculated for .

If fixed amount is withdrawn on the first day of every month, the interest on the total amount of drawings shall be calculated for:

If a fixed amount is withdrawn on the last day of every quarter, the interest on the total amount of drawings shall be calculated for:

Q. Ajay and Vijay are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged @ 10% p.a. Their drawings during 2017 were Rs 24,000 and Rs 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year.

Q. If a fixed amount is withdrawn on the middle day of every quarter of a calendar year, the interest on total amount of drawings will be calculated for ________.

View More

Join BYJU'S Learning Program

similar_icon

Related Videos

lock

Calculating Interest on Drawings

ACCOUNTANCY

Watch in App

explore_more_icon

Explore more

Interest on Drawings-Withdrawn in Unequal Intervals

Standard XII Accountancy

Join BYJU'S Learning Program

CrossIcon