Partnership

Accounting

Easy

Comprehension:

Read the information carefully and answer the questions

A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use.

The amounts withdrawn were: Rs. 12,000 on June 01, 2019, Rs. 8,000; on August 31, 2019, Rs. 3,000; on September 30, 2019, Rs. 7,000; on November 30, 2019, and Rs. 6,000 on January 31, 2020.

Calculate interest on drawings, if the rate of interest is 9 percent per annum.

Calculate Interest on drawings for the amount Rs. 12000 on June 1, 2019.

1200

900

1080

800

✅ Correct Option: 2

Solution: Interest on Drawing of Rs. 12,000

The withdrawal of Rs. 12,000 was made on June 1, 2019 and the financial year ends on March 31, 2020.

Time Period Calculation:

From June 1, 2019 to March 31, 2020 = 10 months

Interest Calculation:

The formula for interest on drawings:

$\text{Interest} = \frac{\text{Amount} \times \text{Rate} \times \text{Time}}{100}$

Where time is in years, so 10 months = $\frac{10}{12}$ years

$\text{Interest} = \frac{12,000 \times 9 \times 10}{100 \times 12}$

$\text{Interest} = \frac{1,080,000}{1,200}$

$\text{Interest} = \text{Rs. } 900$

Note: Since the amount was withdrawn on June 1, 2019, interest is calculated for the remaining period of the financial year, which is 10 complete months (June to March). The interest is calculated on a time proportionate basis as the rate is per annum but the time period is less than a year.

Answer: Option 2 - Rs. 900

2026: 29 May Shift 2

Aveer, Daksh and Kridha are equal partners. They decided to change the profit sharing ratio to 4:3:2. For this purpose, goodwill of the firm was valued at Rs. 90,000. The journal entry for treatment of goodwill on change in profit sharing ratio will be:

2025: 31 May Shift 1

Match List-I with List-II

List-I	List-II
Interest on Drawings	Time (Month)
(A) When the amount is withdrawn at the beginning of each month.	(I) 6 months
(B) When the amount is withdrawn at the end of each month.	(II) 6.5 months.
(C) When the amount is withdrawn at the middle of each month.	(III) 5.5 months.
(D) When the amount is withdrawn at the end of each quarter.	(IV) 4.5 months.

Choose the correct answer from the options given below:

2025: 14 May Shift 2

Which statement is not true about Capital Accounts of Partner-

2026: 21 May Shift 1

If the partnership deed is silent about the profit sharing ratio, the profits and losses of the firm:

2026: 19 May Shift 1

ABC Ltd. has a partnership deed as per which interest on drawing is to be charged @ 9% p.a and the total interest on drawings of Aman (partner) is calculated to be Rs 1755. Find the monthly amount he withdrew, if drawings are done at the beginning of every month during the year.

2026: 19 May Shift 1

Krishna, Sandeep and Karim are partners sharing profits in the ratio of 3:2:1. Their fixed capitals are: Krishna Rs. 1,20,000, Sandeep 90,000 and Karim 60,000. For the year 2024-25, interest was credited to them at @ 8% p.a. instead of 5% p.a. Find the amount transferred from Karim to Krishna's current account as an adjustment.

Calculate Interest on drawings for the amount Rs. 12000 on June 1, 2019.

Solution

Solution: Interest on Drawing of Rs. 12,000

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