Question

25. Calculate the Interest on drawing of Mr. Naresh @10%p.a. for the year ended 31st March
2017 in each of the following cases :
(i) He withdrew * 8,000 in the beginning of each quarter.
(ii) He withdrew * 8,000 at the end of each quarter.
(iii) He withdrew 8,000 during the middle of each quarter.
[Ans. (1) Interest on Drawing * 2,000; (2) Interest on Drawing 1,200; (3) Interest on
Drawing 1,600]​

Answer 1

Answer:

Total drawings= 7500 * 4

=30000

Rate= 10%

Case 1: If he withdrew 7500 in the beginning of each quarter-

Note: When equal amount of drawings is withdrawn at the beginning of each quarter, interest is calculated for a period of 7.5 months.

Hence,

Interest on drawings= 30000 * 10/100 * 7.5/12

= 1875

Case 2: If he withdrew 7500 at the end of each quarter-

Note: When equal amount of drawings is withdrawn at the end of each quarter, interest is calculated for a period of 4.5 months.

Hence,

Interest on drawings= 30000 * 10/100 * 4.5/12

= 1125

Case 3: If he withdrew 7500 during the middle of each quarter-

Note: When equal amount of drawings is withdrawn during the middle of each quarter, interest is calculated for a period of 6 months.

Hence,

Interest on drawings= 30000 * 6/12 * 10/100

= 1500

Explanation:

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