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in Accounting for Partnership – Basic Concepts by (25.6k points)
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Edwin and Abel are partners sharing profits and losses in the ratio of 1:1. Edwin drew Rs. 1000/- at the beginning of every month for the year ending 31st Dec. 2004. Calculate interest on drawings at 6% perannum.

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Total amount withdrawn by Edwin = 1,000 × 12 = 12,000 

1,000 × 12 = 12,000

Average period = \(\frac{Total \,period (months)+1}{2}\) = \(\frac{12+1}{2} = 6:5\)

Interest on drawings = 12,000 x \(\frac{6}{100}\)

6.5/12 = Rs.390.

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