Tom and Harry were partners in a firm sharing profits in the ratio of 5: 3. During the year ended 31st March, 2015 Tom had withdrawn Rs. 40,000. Interest on his drawings amounted to Rs. 2,000. Pass necessary Journal entry for charging interest on drawings assuming that the capitals of the partners were fluctuating. (AI 2016)

SOLUTION

JOURNAL

Date	Particulars	L.F	Amount (Dr.)	Amount (Cr.)
2015 March 31	Tom’s Capital A/c Dr. To Interest on Drawing A/c		2000	2000