According to section 4 of the Indian partnership Act, 1932, partnership is defined as "the relation between persons who gave agreed to share the profits of a business carried on by all or any of them acting for all".

Calculation of interest on drawings of Vennila (using average period)
Total amount of drawings = 5,000 x 2 = Rs.10,000
If drawings are made at the end of every half year, average period = 9
Interest on drawings = Total amount of drawings x Rate of interest x \(\frac { Average\quad period }{ 12 } \)
= Rs.10,000 x \(\frac { 4 }{ 100 } \times \frac { 9 }{ 12 } \) = Rs. 300

Interest on Drawings = 30,000 \(\times\) \(\frac { 10 }{ 100 } \times \frac { 6 }{ 12 } \) = Rs. 1,500

Calculation of interest on capital:
Arivazhagan:

 Interest on Akbar’s capital:

 Note: Since the date of additional capital introduced by Akbar is not given, interest on additional capital is calculated for an average period of 6 months.

Calculation of interest on capital:
Interest on capital = Amount of capital \(\times\) Rate of interest
Interest on Mannan’s capital = 80,000 \(\times\) 5/100 = Rs. 4,000
Interest on Ramesh’s capital = 60,000 \(\times\) 5/100 = Rs. 3,000
Note: Balance of current account will not be considered for calculation of interest on capital.