Question

5. B drew Rs. 8,000 at the end of every month for 9 months ending 31st March 2019. Calculate interest on drawings if rate of interest is @ 10% p.a

Answer 1

Answer:

2,400

Explanation:

ATQ

As B withdrew 8,000 at the end of every month for 9 months then the total amount withdrawn by him will be = 8,000 X 9 = 72,000

Rate of Interest = 10% p.a

Now By Average Period Method, The number of months for the same will be: (8+0)/2 = 4 Months

Interest on drawings = 72,000 X 10/100 X 4/12

Interest on drawings = 2,400

Answer 2

Total amount =8000x9=72000

Average period method=no. of months =8+0/2=4month

so interest on drawing =72000×10/100×4/12

=24000