Mohan, a partner, withdraws ₹ 20,000 on 1st April 2022 and ₹ 40,000 on 1st October 2022. Interest on Drawings @ 6% p.a. on 31st March 2023 will be
Ans – a) Explanation:-
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Interest on the capital of a partner is a
Ans – c) Explanation:- interest on the partner’s capital is only an expense to the firm. Just an expense is neither a loss nor a profit to the firm. If the Revenue of the firm is greater than the total…
Ramesh, Rahul and Raman are partners. Raman withdrew ₹ 20,000 per month in the middle of the month. Interest on drawings charged for the year was ₹ 7200. The rate of interest on drawings is
Ans – d) Explanation:- in the absence of a partnership deed, the Indian Partnership Act 1932 Applies. The interest on the partner’s loan to the firm is charged @ 6% p.a.
Mohan, Mayank, and Madan are partners, their Partnership Deed provides for interest on drawings at 8% p.a., Mayank withdrew a fixed amount in the middle of every month and his interest on drawings amounted to ₹ 24,000 at the end of the year. What was the amount of his monthly drawings?
Ans – a) Explanation:-
Partner’s Drawing Account is closed
Ans – d) Explanation:- When Capitals are Fluctuating:- Partner’s Drawings reduce the capital. Thus Partner’s Drawings account is closed by transferring to the debit side of the Capital account. When Capitals are Fixed:- In the case of fixed capital, the…
The product method is used for the calculation of
Ans – c) Explanation:- Product Method is one of the way to calculate interest on partner’s drawings.
If the equal amount is withdrawn at the beginning of each month for personal use, the period for which interest will be charged will be
Ans – d) Explanation:- Average Month = 12 + 1/2 = 6.5 Months
Mohan draws ₹ 10,000 p.m. on the last day of every month for his personal use. If interest is to be charged @ 5% p.a., interest chargeable from him in the accounting year will be
Ans – b) Explanation:- Average Month = 11 + 0/2 = 5.5 Months Interest on Mohan’s Drawings = 10000 * 12 * 5% * 5.5/12 = ₹ 2750
Ram and Mohan are partners. They draw for personal use ₹ 60,000 and ₹ 40,000 respectively. Interest is chargeable @ 6% p.a. On Drawings. What is the interest on drawings?
Ans – a) Explanation:- Interest on Ram’s Drawings = 60,000 * 6% * 6/12 = ₹ 1800 Interest on Mohan’s Drawings = 40,000 * 6% * 6/12 = ₹ 1200
Partners have to pay interest on withdrawals (in cash or kind) only when provided by the
Ans – b) Explanation:- Partnership Deed is a written agreement between the partners. Interest on the partner’s drawings is charged if the Rate of Interest is agreed upon and mentioned in the partnership deed.