Please solve the question with necessary steps and explanantions.

Dear Student,

Total Drawings:
Tisha: 25,000 x 4 = ₹1,00,000
Divya: 20,000 + 17,5000 + 12,500 = ₹50,000

Calculation of Opening Capital
Particulars Tisha  Divya
Closing Capital
Add: Drawings
Less: Profits
10,00,000
1,00,000
2,50,000
7,50,000
50,000
2,50,000
Opening Capital 8,50,000 5,50,000

Interest on Capital:
Tisha: 8,50,000 x 10/100 = ₹85,000
Divya: 5,50,000 x 10/100 = ₹55,000

Interest on Drawings:
Tisha:
Average Period = (Months left after 1st drawing + months left after last drawing)/2
Average Period = 9/2 = 4.5
Tisha's Interest on Drawings = 1,00,000 x 6/100 x 4.5/12 = ₹2,250

Divya:
Interest on Drawings
Date of drawings Period remaining Interest
31 May, 2020
01 Nov, 2020
01 Feb, 2021
10
5
2
20,000 x 6/100 x 10/12 = ₹1,000
17,500 x 6/100 x 5/12 = ₹437.5
12,500 x 6/100 x 2/12 = ₹125
    ₹1562.5 or ₹ 1563(approx.)

Divya's Interest on Drawings = ₹1563(approx.)

Regards

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