PLEASE HELP ME
NCERT book of accounts
chp:- Partnerchip:Basic Concepts
NUMERICAL QUESTION NO.14
ON 2,50,000
WHY FULL YEAR INTEREST IS NOT CALCULATED???
AND IN THE BOOK AS PER THE ILLUSTRATION NO.4 THEY HAVE CALCULATED INTEREST FULLYEAR
Dear Student,
When additional capital is introduced or withdrawn during an accounting period, then interest is to be calculated for the period for which capital remain invested in the business. Thus, we have calculated the interest for 6 months on Rs 2,50,000 and for 6 months on Rs 2,00,000.
The method that is provided in the illustration is an alternative method. Both the methods are correct. It is up to you that which method will you follow.
Keep Posting!!!
When additional capital is introduced or withdrawn during an accounting period, then interest is to be calculated for the period for which capital remain invested in the business. Thus, we have calculated the interest for 6 months on Rs 2,50,000 and for 6 months on Rs 2,00,000.
The method that is provided in the illustration is an alternative method. Both the methods are correct. It is up to you that which method will you follow.
Keep Posting!!!