Question 41:
Calculate interest
on drawings of Ashok @ 10% p.a. for the year ended 31st March, 2022, in each of
the following alternative cases:
Case 1. If he withdrew ` 7,500 in the
beginning of each quarter.
Case 2. If he withdrew ` 7,500 at the end of
each quarter.
Case 3. If he withdrew ` 7,500 during the
middle of each quarter.
Answer:
Total Drawings = 7,500 × 4 = ` 30,000
Interest Rate = 10% p.a.
Case (a)
When equal amount is withdrawn in the beginning of each quarter, the interest on drawings is calculated for an average period of 7.5 months
Interest on drawing= total drawing×Rate of
drawing/100×Average month / 12
Interest on Ashok’s drawing =30,000×10/100×7.5/12 =1,875
Case (b)
When equal amount is withdrawn at the end of each quarter, the interest on drawings is calculated for an average period of 4.5 months
Interest on drawing= total drawing×Rate of
drawing/100×Average month / 12
Interest on Ashok’s drawing =30,000×10/100×4.5/12 =1,125
Case (c)
When equal amount is withdrawn in the middle of each quarter, the interest on drawings is calculated for an average period of 6 months
Interest on drawing= total drawing×Rate of
drawing/100×Average month / 12
Interest on Ashok’s drawing =30,000×10/100×6/12 =1,500
Question 42: The capital accounts of Tisha and Divya showed credit balances of 10,00,000 and 7,50,000 respectively after taking into account drawings and net profit of `5,00,000. The drawings of the partners during
the year 202122 were:
(i) Tisha withdrew 25,000 at the end of each quarter.
(ii) Divya's drawings were:
31st May, 2021 
`20,000 
1st November, 2021 
`17,500 
1st February, 2022 
`12,500 
Calculate interest on partners' capitals@ 10% p.a. and interest on partners' drawings@ 6% p.a. for the year ended 31st March, 2022.
Answer:
Calculation of Interest on
Drawings
Tisha’s Total
Drawings= 25,000×4=1,00,000
Tisha’s Interest on Drawings=
1,00,000×3/100×4.5/12=2,250
Divya’s Interest on Drawings
Date of Drawings 
Drawings 
Time left after Drawing 
Product 
3152021 
20,000 
10 
2,00,000 
1112021 
17,500 
5 
87,500 
122022 
12,500 
2 
25,000 

3,12,500 
Divya’s Interest on Drawings
= 3,12,500×6/10×1/12=1,563
Calculation of Interest on Capital
Calculation of opening Capital

Tisha

Divya

Closing Capital
Add; Drawings

10,00,000
1,00,000

7,50,000
50,000

Less: Profit

11,00,000
2,50,000

8,00,000
2,50,000

Opening Capital

8,50,000

5,50,000

Tisha’s
Interest on Capital = 8,50,000×10/100=85,000
Divya’s
Interest on Capital = 5,50,000×10/100=55,000
Question 43: Calculate the amount of Manan's monthly
drawings for the year ended 31st March, 2022, in the following alternative
cases when Partnership Deed allows interest on drawings @ 10% p.a.:
(i) If interest on drawings is 1,950 and he withdrew a fixed amount in the beginning of each month.
(ii) If interest on drawings is F 2,400 and he withdrew a fixed amount in the middle of each month.
(iii) If interest on drawings is 2,750 and he withdrew a fixed amount at the end of each month.
Answer:
(i)
If interest on drawings is 1,950 and he withdrew a fixed amount in the
beginning of each month.
Interest on drawings @ 10% p.a.
Average month 6.5
Annual amount of drawings = (1,950×12×100) ÷ (6.5×10) = 36,000
Monthly amount of drawings = 36,000 ÷ 12 = 3000
(ii)
If interest on drawings is F 2,400 and he withdrew a fixed amount in the middle
of each month.
Interest on drawings @ 10% p.a.
Average month 6
Annual amount of drawings = (2,400 ×12×100) ÷ (6.5×10) =48,000
Monthly amount of drawings = 48,000 ÷ 12 = 4,000
(iii)
If interest on drawings is 2,750 and he withdrew a fixed amount at the end of
each month.
Interest on drawings @ 10% p.a.
Average month 5.5
Annual amount of drawings = (2,750 ×12×100) ÷ (5.5×10) =60,000
Monthly amount of drawings = 60,000 ÷ 12 = 5,000
Question 44: Calculate the amount of Shiv's quarterly drawings
for the year ended 31st March, 2022, in the following alternative cases when
Partnership Deed allows interest on drawings @ 12% p.a.:
(i) If interest on drawings is F 1,500 and he withdrew a fixed amount in the beginning of each quarter.
(ii) If interest on drawings is 1,200 and he withdrew a fixed amount in the middle of each quarter.
(iii) If interest on drawings is 900 and he withdrew a fixed amount at the end of each quarter.
Answer:
(i)
If interest on drawings is `
1,500 and he
withdrew a fixed amount in the beginning of each quarter.
Interest on drawings @ 12% p.a.
Average month 7.5
Annual amount of drawings = (1,500 ×12×100) ÷ (7.5×12) =20,000
Quarterly amount of drawings = 20,000 ÷ 4 = 5,000
(ii)
If interest on drawings is 1,200 and he withdrew a fixed amount in the middle
of each quarter.
Interest on drawings @ 12% p.a.
Average month 6
Annual amount of drawings = (1,200 ×12×100) ÷ (6×12) =20,000
Quarterly amount of drawings = 20,000 ÷ 4 = 5,000
(iii)
If interest on drawings is 900 and he withdrew a fixed amount at the end of
each quarter.
Interest on drawings @ 12% p.a.
Average month 4.5
Annual amount of drawings = (900 ×12×100) ÷ (4.5×12) =20,000
Quarterly amount of drawings = 20,000 ÷ 4 = 5,000
Question 45:
Amit and Vijay
started a partnership business on 1st April, 2021. Their capital contributions
were ` 2,00,000 and ` 1,50,000
respectively. The Partnership Deed provided as follows:
(a) Interest on capital be allowed @ 10% p.a.
(b) Amit to get a salary of ` 2,000 per month and
Vijay ` 3,000 per month.
(c) Profits are to be shared in the ratio of 3 : 2.
Net profit for the year ended 31st March, 2022 was ` 2,16,000. Interest on drawings amounted to ` 2,200 for Amit and ` 2,500 for Vijay.
Prepare Profit and Loss Appropriation Account.
Answer:
Profit and Loss Appropriation Account 

Dr. 


Cr. 

Particulars 
( `) 
Particulars 
( `) 

Interest on Capital: 

Profit and Loss A/c (Net Profit) 
2,16,000 

Amit’s Capital A/c 
20,000 

Interest on Drawings A/c: 


Vijay’s Capital A/c 
15,000 
35,000 
Amit’s Capital A/c 
2,200 

Salary to: 

Vijay’s Capital A/c 
2,500 
4,700 

Amit (2,000 × 12) 
24,000 




Vijay (3,000 × 12) 
36,000 
60,000 



Profit transferred to: 




Amit’s Capital A/c 
75,420 




Vijay’s Capital A/c 
50,280 
1,25,700 




2,20,700 

2,20,700 





Working Notes:
WN 1 Calculation
of Interest on Capital
Interest on Amit’s Capital=2,00,000×10/100=20,000
Interest on Vijay’s Capital=1,50,000×10/100=15,000
WN 2 Calculation
of Profit Share of each Partner
Divisible
Profit = 2,16,000 + 4,700  ` 35,000  ` 60,000 = ` 1, 25,700
Profit
sharing ratio = 3 : 2
Amit’s
profit share=1,25,700×3/5=75,420
Vijay’s
profit share=1,25,700×2/5=50,280