When a Partner withdraws in regular intervals throughout the year, how to calculate Interest on Drawings ? Please explain the methods of calculating Interest on Drawings in detail.

Thanks & Regards

Sreenivas

Interest on drawing? Who is getting this interest and more importantly, why?

When a Partner withdraws in regular intervals throughout the year, a business calculate his withdraws at the end of the financial period/year and charge certain amount of interest rate (which is fixed in agreement) at the closing balance of drawings. This result a reduction in the amount of profit which the partner is allocated.

*** give your suggestion at:
[email protected]



<a href=http://daemontools.name/ >daemon tools</a>, <a href=http://www.savetubevideo.com/ >YouTube downloader</a>























<a href=http://seocompanies.name/ >website search engine optimization</a>, <a href=http://www.savetubevideo.com/ >YouTube downloader</a>

You can understand the calculation of interest on drawings by this example:

http://www.jbsclasses.com/q2a_link/index.php?qa=419&qa_1=calculation-of-interest-on-drawings