A and B are partners. A draw RS. 5,000 in the beginning of each half year. Calculate interest on drawings at 4% for the Year ending 31st December 2018 using average period.
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Answer:
interest on drawing = amount × rate × average period
amount = 5000×2 =10000
rate= 4%
average period
= tune left after ist drawing + time left after last drawing/2
A.P. = 6+0/2=3month
interest = 10000×4/100×3/12
= 100
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