Amit and Bhola are Partners in a Firm. They Share Profits in the Ratio of 3:2. As Per their Partnership Agreement-Accountancy

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Amit and Bhola are partners in a firm. They share profits in the ratio of 3:2. As per their partnership agreement, interest on drawings is to be charged @ 10% p.a. Their drawings during 2017 were Rs 24,000 and Rs 16,000, respectively. Calculate interest on drawings based on the assumption that the amounts were withdrawn evenly, throughout the year.




Calculation for Amit’s Drawing

= Rs. 24,000 `\times` `10/100` `\times` `6/12`
= Rs. 1,200

Calculation for Bhola’s Drawing

= Rs. 16,000 `\times` `10/100` `\times` `6/12`
= Rs. 800


Chapter-2 Partnership Basic: Accounts



Location: India

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