Ram and Rohan and Rohit are partners in a firm, sharing profits and losses equally. Each of them withdraw rs. 1000 quarterly. If intrest is to be charged on drawings @ 6% pet annum, the calculation of average period and interest on drawings will be as follows: A) if the amount is withdrawn at the beginning of each month B) if the amount is withdrawn in the middle of the month C) if the amount is withdrawn at the end of each month?
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Step by step
Solved in 3 steps with 2 images
