Question

38. A and B are partners in a firm. During the year 2013, A withdrew 1,000 p.m. and B withdraw
3500p.m. on the first day of each month for personal use. Interest on drawings is to be charged
@ 10% p.a. The interest on drawings will be​

Answer 1

Answer:

A's 1000×12=12000

12000×10 6.5

-------------- × ---- = 650l

100 12

B's 3500×12= 42000

42000×10 6.5

----‐--------- × ------ = 2275

100 12

Answer 2

Answer:

The interest on drawings (A's) = 650

The interest on drawings (B's) = 2,275

Explanation:

Given :

A and B are partners in a firm

A withdrew Rs 1,000 p.m.

B withdraw Rs 3,500p.m.

They withdraw on the first day of each month

Interest on drawings is to be charged 10% p.a.

To find :

The interest on drawings

Solution :

They withdraw on the first day of each month

So,

Beginning at the each month

Average period = 6.5

The interest on drawings = Total drawing × rate of the interest × Average period / 12

The interest on drawings (A's) =

A withdrew Rs 1,000 p.m.

⇒ 1,000 × 12 = 12,000

⇒

$12,000 \times \frac{10}{100} \times \frac{6.5}{12}$

⇒ 650

⇒ 650The interest on drawings (A's) = 650

_____________________________

★ The interest on drawings (B's) =

$42,000 \times \frac{10}{100} \times \frac{6.5}{12}$

⇒ 2,275

The interest on drawings (B's) = 2,275