Partnership firm - interest on partner's capital

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SANTANU SAHA (Querist)
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25 March 2015 Sir/Madam,

In calculation of interest on the capital of partners in a firm, should the drawings made during the year be deducted?

Would the calculation be as follows:

First Case:
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Opening Capital =Rs. 12,25,000/-
Additional Capital(Introduced during the year)= Rs. 10,00,000/-
Drawings (during the year)= Rs. 4,00,000/-
Rate of interest = 12% p.a

Intt. on Capital = (12,25,000 + 10,00,000 - 4,00,000)*12/100 = Rs. 2,19,000/-

Second Case: (No Additional Capital):
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Intt. on Capital = (12,25,000-4,00,000)*12/100= Rs. 99,000/-

Please advise whether the above calculations are correct or wrong u/s 40b.

Regards,
Santanu.

SANTANU SAHA

SANTANU SAHA (Querist)
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27 March 2015 No one has replied to my querry .........