Question

Calculate the interest on drawings @ 12% p.a. for the year ended 31st

March 2020, in

each of the following cases:

(i)If Rs 5,000 withdrawn in the beginning of each quarter.

(ii) If Rs 5,000 withdrawn at the end of each quarter​

Answer 1

Answer: 1-- 1500

               2 -- 900

Explanation:

solution 1---

     total amount withdraw in the year = 5000× 4

                                                               = 20000

    interest on drawing = 20000×12%×7.5*/12

                                       =  1500

solution 2-----

total amount withdraw in the year = 5000 × 4

                                                         =20000

interest on drawing = 20000 × 12% × 4.5*/12

                                =  900