AB are two partners in a firm, as per the terms of agreement partners drawing will carry interest @ 10%. If A has drawn funds from business as per the details given below. Find the interest for the year ended 31.12.2012 01.04.2012 ` 20,000 01.06.2012 ` 10,000 01.09.2012 ` 20,000

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The interest on drawings is calculated based on the period for which the money was drawn from the business. The interest calculation for each drawing is as follows:1. For the first drawing of `20,000 on 01.04.2012, the interest period is 9 months (April to December).   Interest = 20,000 * 10% * 9/12 = `1,5002. For the second drawing of `10,000 on 01.06.2012, the interest period is 7 months (June to December).   Interest = 10,000 * 10% * 7/12 = `583.33 (rounded)3. For the third drawing of `20,000 on 01.09.2012, the interest period is 4 months (September to December).   Interest = 20,000 * 10% * 4/12 = `666.67 (rounded)Adding all the interest amounts: `1,500 + `583.33 + `666.67 = `2,750 (rounded)

AB Are Two Partners in a Firm, as Per the Terms