Question

18. P, Q and R are partners in a firm sharing profits equally. 'P' withdrew
1,000 p.m. at the beginning of each month while 'Q' withdrew * 800
p.m. at the end of every month. R, however, withdrew 700 p.m. at the
middle of every month. Interest is to be charged at 9% p.a. as per
partnership deed. Calculate interest on drawing of each partner.
[Ans. P - 585, Q - 396, R-378]
​

Answer 1

Explanation:

• P' withdrew 1,000 p.m. at the beginning of each month

annual drawing = 12 ×1,000 = 12,000

average period = 6.5

Interest on drawing = annual drawing × rate × average period /12

12,000×(9/100)×(6.5/12)

Interest on drawing (P) = 585

• Q' withdrew * 800 p.m. at the end of every month

annual drawing = 12 × 800 = 9,600

average period = 5.5

Interest on drawing = annual drawing × rate × average period /12

9,600×(9/100)×(5.5/12)

Interest on drawing (Q) = 396

• R withdrew 700 p.m. at the middle of every month

annual drawing = 12 × 700 = 8,400

average period = 6

Interest on drawing = annual drawing × rate × average period /12

8,400×(9/100)×(6/12)

Interest on drawing (R) = 378

Answer 2

ANSWER :

• ➺ If partner P withdrew Rs. 1,000 p.m. at the beginning of each month throughout the year; then Interest on Drawings @9% p.a. will be Rs. 585.

• ➺ If partner Q withdrew Rs. 800 p.m. at the end of each month throughout the year; then Interest on Drawings @9% p.a. will be Rs. 396.

• ➺ If partner R withdrew Rs. 700 p.m. at the middle of each month throughout the year; then Interest on Drawings @9% p.a. will be Rs. 378.

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SOLUTION :

❒ Given :-

• P withdrew Rs. 1,000 p.m. at the beginning of each month throughout the year.

• Q withdrew Rs. 800 p.m. at the end of each month throughout the year.
• R withdrew Rs. 700 p.m. at the middle of each month throughout the year.
• Interest on drawings to be charged @9% p.a.

❒ To Calculate :-

• Interest on Drawings of Partner P = ?

• Interest on Drawings of Partner Q = ?

• Interest on Drawings of Partner R = ?

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❒ Calculation of Interest on Drawings of Partner P :-

[If fixed amount are withdrawn at the beginning of every month throughout the year, interest on the total amount of drawings is calculated for the average period; i.e., for 6 ½ months or 6.5 months.]

Here,

• Amount withdrawn per month = Rs. 1,000

∴ Total amount withdrawn throughout the year = Rs. (1,000 × 12)

➜ Total amount withdrawn throughout the year = Rs. 12,000.

• Rate of Interest on Drawings = 9% p.a.

• Time = 6.5 months

We know that,

• $\dag \: \: \underline{ \boxed{ \sf{ \: Interest \: \: on \: \: Drawings = Total \: \: Drawings \times Rate \: \: of \: \: Interest \times Time \: }}}$

Using this formula, we get,

• ★ Interest on Drawings = Total Drawings × Rate of Interest × Time

➨ Interest on Drawings = Rs. 12,000 × 9% × 6.5 months

➨ Interest on Drawings = Rs. 12,000 × $\sf{\dfrac{9}{100}}$ × $\sf{\dfrac{6.5}{12}}$

∴ Interest on Drawings = Rs. 585

• Hence, Interest on Drawings of Partner P is Rs. 585.

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❒ Calculation of Interest on Drawings of Partner Q :-

[If fixed amount are withdrawn at the end of every month throughout the year, interest on the total amount of drawings is calculated for the average period; i.e., for 5 ½ months or 5.5 months.]

Here,

• Amount withdrawn per month = Rs. 800

∴ Total amount withdrawn throughout the year = Rs. (800 × 12)

➜ Total amount withdrawn throughout the year = Rs. 9,600.

• Rate of Interest on Drawings = 9% p.a.

• Time = 5.5 months

We know that,

• $\dag \: \: \underline{ \boxed{ \sf{ \: Interest \: \: on \: \: Drawings = Total \: \: Drawings \times Rate \: \: of \: \: Interest \times Time \: }}}$

Using this formula, we get,

• ★ Interest on Drawings = Total Drawings × Rate of Interest × Time

➨ Interest on Drawings = Rs. 9,600 × 9% × 5.5 months

➨ Interest on Drawings = Rs. 9,600 × $\sf{\dfrac{9}{100}}$ × $\sf{\dfrac{5.5}{12}}$

∴ Interest on Drawings = Rs. 396

• Hence, Interest on Drawings of Partner Q is Rs. 396.

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❒ Calculation of Interest on Drawings of Partner R :-

[If fixed amount are withdrawn on the middle of every month throughout the year, interest on the total amount of drawings is calculated for the average period; i.e., for 6 months.]

Here,

• Amount withdrawn per month = Rs. 700

∴ Total amount withdrawn throughout the year = Rs. (700 × 12)

➜ Total amount withdrawn throughout the year = Rs. 8,400.

• Rate of Interest on Drawings = 9% p.a.

• Time = 6 months

We know that,

• $\dag \: \: \underline{ \boxed{ \sf{ \: Interest \: \: on \: \: Drawings = Total \: \: Drawings \times Rate \: \: of \: \: Interest \times Time \: }}}$

Using this formula, we get,

• ★ Interest on Drawings = Total Drawings × Rate of Interest × Time

➨ Interest on Drawings = Rs. 8,400 × 9% × 6 months

➨ Interest on Drawings = Rs. 8,400 × $\sf{\dfrac{9}{100}}$ × $\sf{\dfrac{6}{12}}$

∴ Interest on Drawings = Rs. 378

• Hence, Interest on Drawings of Partner R is Rs. 378.