Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:
While calculating interest on partners' capital and interest on partner's drawings in a partnership firm, if rate of interest on both is 6%, then time factor is:
Options:
Considered
Ignored
Managed
None of these
Correct Answer:
Ignored
Explanation:
When Rate of Interest on Drawings or Capital is given in % without word per annum. Interest on drawing and capital is calculated with a flat rate irrespective of date of drawings or capital.