Sir.... Why we should not charge interest on the drawings 40,000?
Then how long will they charge the interest on drawings?
Which means..... will they charge interest only for the particular year or will they charge for the subsequent years also?
If drawings effect the value by same amount as of drawings are to capital of partner then no interest is charged. If the drawings does not effect, then interest is charged for the amount until the drawings are paid back to firm.
Sorry..... I can't understand....pls....pls.... explain on some other way.....
Now I understood the difference..... Last doubt.... Say - on 1st jan 2020 drawings against profit is 10,000 And the deed provides interest on drawings 10% p.a. Then....1,000 Interest on drawings against profit will be charged only for 2020 and not for 2021..... Am I right?
Thank you very much for your supportð???
Welcome It also helps me to recall the previous concepts