Interest on Drawings (IOD) Class 12 | CH-1 Partnership Fundamentals | By Anuj Sir || CLASS-08

Welcome to today’s Class 12 Accountancy lecture on Chapter 1: Fundamentals of Partnership.
In this video, we will cover the topic IOD (Interest on Drawings), an important adjustment in the Profit & Loss Appropriation Account.

Interest on Drawings (IOD) refers to the amount charged by the firm from its partners when they withdraw money for personal use during the accounting period.

-It is charged as per the agreement between the partners.

-The interest amount depends on the amount withdrawn, the time of withdrawal, and the rate of interest decided.

-IOD is treated as an income for the firm and is credited to the Profit & Loss Appropriation Account.

-The amount is debited to the partner’s capital/current account.

In this video, you will learn how to calculate interest on drawings using different methods with proper examples and formulas based on the NCERT syllabus.

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Видео Interest on Drawings (IOD) Class 12 | CH-1 Partnership Fundamentals | By Anuj Sir || CLASS-08 канала SHIKSHA DHAM 11th&12th