Rocky (PCC) (96 Points)
20 April 2009hi in a partnership business if provided in the partnership deed that interest is to be charged on drawings at 6% per annum . In this partnership firm there are 2 partners x and y. They withdrew Rs. 8000 and 10000 respectively . How interest on drawings is to be calculated and wat should be the answer ....? But in book it is given as 240 and 300/- respectively. The business was started on 1st jan 05 and Accounting year is from jan - Dec . ?.
Milan Somani
(CA)
(1456 Points)
Replied 20 April 2009
interest on drawing is charged on an avg basis i.e. 8000*6% for 6 months
triumph-CMA
(Chartered Accountant)
(503 Points)
Replied 20 April 2009
when nothing is mentioned in the question then interest is calculated on the basis of given rate for 6 months
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 21 April 2009
Yes Rocky very much in agreement with what Dhirendra Sir has mentioned.
Rupesh Jha
(M.Com CA PhD* and MBA*)
(1116 Points)
Replied 24 April 2009
YES,WHEN DATE OF DRAWING NOT MENTIONED IN THE QUESTION THAN INTT. ON DRAWING SHOULD BE CALULATED FOR SIX MONTH(AVERAGE BASIS).
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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