Question

Harish is a partner in a firm. He withdrew the following amounts during the year 2017 : Rs February 01 4,000 May 01 10,000 June 30 4,000 October 31 12,000 December 31 4,000 Interest on drawings is to be charged @ 7.5 % p.a. Calculate the amount of interest to be charged on Harish’s drawings for the year ending December 31, 2017.

Answer 1

Explanation:

Date No. of months till Workings Total

May 1 11 months 4,000 x 11/12 x 7.5/12 RS-275

August 1 8 months 10,000 x 8/12 x 7.5/12 RS-500

September 30 6 months 4,000 x 6/12 x 7.5/12 RS-150

January 31 2 months 12,000 x 2/12 x 7.5/12 RS-150

March 31 0 0 0

Total interest = RS-1,075

December 27, 2019