Rakesh and Roshan are Partners, Sharing Profits in the Ratio of 3:2 with Capitals of Rs 40,000 and Rs 30,000, Respectively-Accountancy - Bzziii.com

Rakesh and Roshan are partners, sharing profits in the ratio of 3:2 with capitals of Rs 40,000 and Rs 30,000, respectively.

They withdrew from the firm the following amounts, for their personal use:

Rakesh	Month	Rs
	May 31, 2016	600
	June 30, 2016	500
	August 31, 2016	1,000
	November 1, 2016	400
	December 31, 2016	1,500
	January 31, 2017	300
	March 01, 2017	700
Rohan	At the beginning of each month	400

Interest is to be charged @ 6% p.a. Calculate interest on drawings, assuming that book of accounts are closed on March 31, 2017, every year.

Interest on Drawing

Rakesh

	Drawings × Period	Product
May 31, 2016 to March 31,2017	600 X 10	6,000
June 30, 2016 to March 31,2017	500 X 9	4,500
August 31, 2016 to March 31,2017	1,000 X 7	7,000
November 1, 2016 to March 31,2017	400 X 5	2,000
December 31, 2016 to March 31,2017	1,500 X 3	4,500
January 31, 2017 to March 31,2017	300 X 2	600
March 01, 2017 to March 31,2017	700 X 1	700
	Sum of product	25,300

Calculations for Interest of Rakesh's Capital

Interest = Sum of Product `\times` `"Rate"/"100"` `\times` `1/12`

Interest = 25,300 `\times` `"6"/"100"` `\times` `1/12`

= Rs. 126.5

Calculations for Interest of Rohan's Capital

Interest = Sum of Product `\times` `"Rate"/"100"` `\times` `1/12`

Interest = 4,800 `\times` `"6"/"100"` `\times` `frac{13}{2\times12}`

= Rs. 156.

Chapter-2 Partnership Basic: Accounts

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