01 April 2010
Hi Girish, say the drawings are amde at the beginning of each month. it means that the withdrawals will be made on 1st Jan, 1st feb....... 1st Nov and 1st dec. it meand that partner will hv to pay interest for full 12 months for withdrawal of Jan, 11 months for feb..... 2 months for nov and 1 month for dec. If we take average of the same (12+11+....+2+1/12), we can simply say that on an average partner will hv to pay 6.5 months interest. same is the funda for 5.5 but it starts from 11, 10.....1,0 if the withdrawals are made at the month end. Regards, CA Shakuntala Chhangani
CAclubindia
