Question

Ayesha is a partner in a firm. She withdrew ₹6,000 at the end of each quarter during the year ended 31st March, 2019. Interest on her drawings @ 10% P.a. will be:​

Answer 1

Answer:

Interest on her drawings will be ₹ 900

Explanation:

Given:

Withdrawn amount ₹6,000

Time of withdrawal = At the end of each quarter

Rate of interest = 10% P.a.

Interest on drawings = ??

Solution :

Total amount of drawings = 6,000 × 4

Total amount of drawings = ₹ 24,000

If drawings are made at the end of each quarter :

Average period = 4.5

★ Interest on drawings =

$\sf{\longrightarrow{Amount \: of \: drawings \: \times \: \dfrac{Rate \: of \: interest}{100} \: \times \: \dfrac{Average \: period}{12}}}$

$\longrightarrow{\sf{24,000 \: \times \: \dfrac{10}{100} \: \times \: \dfrac{4.5}{12}}}$

$\sf{\longrightarrow{900}}$

Interest on drawings = ₹ 900

∴ Interest on her drawings will be ₹ 900

Answer 2

Explanation:

Ayesha withdrew ₹6,000 at the end of each quarter

Total amount withdrawn = 6,000 × 4

= ₹24,000

(Frequency of withdrawal) = quarterly

at the end of each quarter = (9+0)/2 = 4.5

Interest on her drawings =

Total amount withdrawn × rate × average period/12

= ₹24,000 × 10/100 × 4.5/12

= 900

Interest on her drawings = ₹900

Hence, Interest on her drawings = ₹900