Question

Harish is a partner in a firm. He withdrew the following amounts during the year 2015: 

February 01 Rs. 4,000 

May 01 Rs. 10,000 

June 30 Rs. 4,000 

October 31 Rs. 12,000 

December 31 Rs. 4,000 

Interest on drawings is to be charged @ 712 % p.a. Calculate the amount of interest to be charged on Harish’s drawings for the year ending December 31,2015.

Answer 1

Calculation of interest on drawings – Harish

Interest on Drawing 

= 1,72,000 x \(\frac{75}{100}\) x \(\frac{1}{12}\) = 1,075.