Practicing Success
A and B are partners sharing profits in a ratio of 5:4. They withdraw ₹4000 each at the end of each quarter. Interest will be charged @ 6%p.a. Calculate total amount of interest on drawings that is credited to the profit and loss appropriation account at the end of the year? |
₹360 ₹720 ₹1080 ₹350 |
₹720 |
The correct answer is option 2- ₹720. Total amount of drawings of A = ₹4000*4 Ist drawing = 30 June Interest on drawings of A = 16000*6/100*4.5/12 So, the total amount of drawings that will be credited = ₹360+ ₹ 360 |