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Accounting from incomplete records
Accountancy
How do we got the months of interest of capital and drawings
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Best Answer
For Drawings: Interest is to be calculated from the date of drawing the amount to end of the financial year. For example in the above problem, A's first drawing was on 30th April. Therefore, we need to calculate the interest on that drawn amount from 30th April to 31st March i.e.for 11 months. For Capital: It is simply how much period that capital stayed in the business.
