Question 41:

A and B are partners sharing profits equally. A drew regularly ` 4,000 in the beginning of every month for six months ended 30th September, 2022. Calculate interest on drawings @ 5% p.a. for a period of six months.

Answer:

Amount of drawing= 4000

No. of drawings= 6

Total amount of drawing=24,000

Average month = time left after first drawing + time left after last drawing ÷2

                            = 6+1÷2=3.5

Interest on drawing= total drawing × Rate of drawing/100×Average month / 12

                                 =24,000×5/100×3.5/12=350

 

Question 42:

A and B are partners sharing profits equally. A drew regularly  ` 4,000 at the end of every month for six months ended 30th September, 2022. Calculate interest on drawings @ 5% p.a. for a period of six months.

Answer:

Average month = time lift after first drawing + time lift after last drawing ÷2

                            = 5+0÷2 = 2.5

Interest on drawing= total drawing × Rate of drawing/100×Average month / 12

                            =24,000×5/100×2.5/12 = 250

 

 

Question 43:

B and C are partners sharing profits equally. C regularly withdrew 5,000 per month in the beginning of the month for si× months ended 30th September, 2022. Calculate interest on drawings @ 12% p.a. for the year ended 31st March, 2023.

Answer:

Monthly drawing = 5,000

Total drawing = 30,000

 

Interest on drawing= 30000×12× 9.5/100×12= 2,850

Average month = 12 + 7 / 2= 9.5

 

Question 44:

Calculate interest on drawings of Ashok @ 10% p.a. for the year ended 31st March, 2023, in each of the following alternative cases:
Case 1.  If he withdrew  ` 7,500 in the beginning of each quarter.
Case 2.  If he withdrew  ` 7,500 at the end of each quarter.
Case 3.  If he withdrew  ` 7,500 during the middle of each quarter.

Answer:

Total Drawings = 7,500 × 4 = ` 30,000

Interest Rate = 10% p.a.

Case (a)

When equal amount is withdrawn in the beginning of each quarter, the interest on drawings is calculated for an average period of 7.5 months

Interest on drawing= total drawing×Rate of drawing/100×Average month / 12

Interest on Ashok’s drawing =30,000×10/100×7.5/12  =1,875

Case (b)

When equal amount is withdrawn at the end of each quarter, the interest on drawings is calculated for an average period of 4.5 months

Interest on drawing= total drawing×Rate of drawing/100×Average month / 12

Interest on Ashok’s drawing =30,000×10/100×4.5/12 =1,125

Case (c) 

When equal amount is withdrawn in the middle of each quarter, the interest on drawings is calculated for an average period of 6 months

Interest on drawing= total drawing×Rate of drawing/100×Average month / 12

Interest on Ashok’s drawing =30,000×10/100×6/12  =1,500

 

Question 45:The capital accounts of Tisha and Divya showed credit balances of 10,00,000 and 7,50,000 respectively after taking into account drawings and net profit of `5,00,000. The drawings of the partners during

the year 2024 were:

(i) Tisha withdrew 25,000 at the end of each quarter.

(ii) Divya's drawings were:

31st May, 2023	`20,000
1st November, 2023	`17,500
1st February,2023	`12,500

Calculate interest on partners' capitals@ 10% p.a. and interest on partners' drawings@ 6% p.a. for the year ended 31st March, 2024.

 

Answer:

Calculation of Interest on Drawings

Tisha’s Total Drawings= 25,000×4=1,00,000

Tisha’s Interest on Drawings= 1,00,000×3/100×4.5/12=2,250

 

Divya’s Interest on Drawings

Date of Drawings	Drawings	Time left after Drawing	Product
31-5-2023	20,000	10	2,00,000
1-11-2023	17,500	5	87,500
1-2-2024	12,500	2	25,000
			3,12,500

 

Divya’s Interest on Drawings = 3,12,500×6/10×1/12=1,563

 

Calculation of Interest on Capital

 

Calculation of opening Capital

		Tisha	Divya
Closing Capital Add; Drawings	10,00,000 1,00,000		7,50,000 50,000
Less: Profit	11,00,000 2,50,000		8,00,000 2,50,000
Opening Capital	8,50,000		5,50,000

 

Tisha’s Interest on Capital= 8,50,000×10/100=85,000

Divya’s Interest on Capital= 5,50,000×10/100=55,000