Question

If a partner withdraws Rs.12,000 in the end of every quarter and rate of interest is 12% p.a

Answer 1

Answer:

Partner's interest on drawings =

Total product × Rate of interest/100 × Average period / 12

= ₹48,000 × 12/100 × 4.5/12

= ₹2,160

Explanation:

There are 4 quarters in a year.

Drawings are mentioned below(Assuming financial year) -

1st drawing = 30th June

2nd drawing = 30th sept

3rd drawing = 31st Dec

4th drawing = 31st March

Total product/drawings = ₹12,000 × 4 times

= ₹48,000

Average period =

Time left after 1st drawings + Time left after last drawings / 2

So, 9 months + 0 months / 2 = 4.5