Partner of a firm withdraw Rs. 6,000/- during the year. The accountant

1.	Partner of a firm withdraw Rs. 6,000/- during the year. The accountant changed Rs, 300/- as interest on the same at 10% rate of interest. If it correct? Show the calculation.
Answer» Correct Interest on drawings = Amount of drawings x Rate of interest x 6/12 = 6000 x 10/100 x 6/12 = 300 Assumption : The date of drawings is not given. In such case the interest should be 6 months on the whole of the amount.

Partner of a firm withdraw Rs. 6,000/- during the year. The accountant changed Rs, 300/- as interest on the same at 10% rate of interest. If it correct? Show the calculation.

Answer»

Correct Interest on drawings = Amount of drawings x Rate of interest x 6/12

= 6000 x 10/100 x 6/12

= 300

Assumption : The date of drawings is not given. In such case the interest should be 6 months on the whole of the amount.