A and B are partners B draws a fixed amount at the beginning of every month IOD is charged - Accountancy - Reconstitution- Change in Existing Profit Sharing Ratio

Question

A and B are partners B draws a fixed amount at the beginning of
every month IOD is charged @10% P a At the end of the year interest
on B's drawings amounts to Rs 3250 calculate B's Drawing

Neha Chopra · Accepted Answer

Dear Student,

Formula for interest on drawings when fixed amount is withdrawn at
the beginning of every month = Amount drawn×6
512×Rate of Interest on Drawing100
so 3,250 =Amount drawn ×6 512×10100
This gives amount of drawing as Rs 60,000

Regards,

A and B are partners B draws a fixed amount at the beginning of every month. IOD is charged @10% P.a. At the end of the year interest on B's drawings amounts to Rs. 3250. calculate B's Drawing