33. John, one of the partners made the following withdrawals during the year 2015. 7 31st Jan. 2015 500 31st March 2015 400 1st June 2015 600 1st Aug. 2015 400 31st Oct. 2015 500 Calculate interest on drawings @ 12% p.a. for the year ended 31st Dec. 2015. (Ans: Interest on drawings # 163)
Answers
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Note: When equal amount of drawings is withdrawn at the beginning of each quarter, interest is calculated for a period of 7.5 months.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Note: When equal amount of drawings is withdrawn at the end of each quarter, interest is calculated for a period of 4.5 months.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Note: When equal amount of drawings is withdrawn during the middle of each quarter, interest is calculated for a period of 6 months.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