Question

2. Hina and Rahim are partners in a firm . The partnership deed provided that interest on drawings will be charged @ 6% p.a. During
the year ended Decembera31, 2020, Hina withdrew Rs 5000 at the beginning of the every month and Rahim withdrew Rs5,000 at
the end of the every month. Calculate interest on the partners drawing

Answer 1

Explanation:

• Hina withdrawn Rs 5000 p.m.the beginning of the every month

annual drawing = 12 × 5000 = 60,000

average period = 6.5

Rate = ,6%

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

60,000×(6/100)×(6.5/12)

Interest on drawing (Hina) = Rs 1,950

• Rahim withdrew Rs5,000 at the end of the every month.

annual drawing = 12 × 5000 = 60,000

average period = 5.5

Rate = ,6%

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

60,000 × (6/100) × (5.5/12)

Interest on drawing (Rahim) = Rs 1,650

Hence, Interest on drawing (Hina) = Rs 1,950

Interest on drawing (Rahim) = Rs 1,650

Answer 2

Answer:

Interest on drawings =

Hina's Case = Rs. 1,950

Rahim's Case = Rs. 1,650

Explanation:

Solution :

Interest rate = 6 % p.a.

★ Formula used:

Interest on drawings =

$\sf{Total \: amount \: of \: drawings \: \times \: \dfrac{Rate \: of \: interest}{100} \: \times \: \dfrac{Average \: period}{12}}$

• Case (Hina) :

Hina withdrew Rs. 5,000 at the beginning of the every month :

If drawings are made at the beginning of every month :

Total amount withdrawn = Rs. 5,000 × 12 = Rs. 60,000

Total amount withdrawn = Rs. 60,000

Average Period = 6.5

$\longrightarrow{60,000 \: \times \: \dfrac{6}{100} \: \times \: \dfrac{6.5}{12}}$

$\longrightarrow{1,950}$

Interest on drawings = Rs. 1,950

• Case (Rahim) :

Rahim withdrew Rs5,000 at the end of the every month :

If drawings are made at the end of every month :

Total amount withdrawn = Rs. 5,000 × 12 = Rs.60,000

Total amount withdrawn = Rs. 60,000

Average period = 5.5

$\longrightarrow{60,000 \: \times \: \dfrac{6}{100} \: \times \dfrac{5.5}{12}}$

$\longrightarrow{1,650}$

Interest on drawings = Rs. 1,650

Therefore, Interest on drawings =

Hina's Case = Rs. 1,950

Rahim's Case = Rs. 1,650