Question

John is a partner in a firm. He withdraws ₹1,000 p.m. regularly. Interest on drawings is

charged @ 5% p.a. Calculate the interest on drawings using average period, if he draws

(i) At the beginning of every month

(ii) In the middle of every month

(iii) At the end of every month​

Answer 1

Answer:

drawings=1000*12=12000

1). int. on drawing=12000*5/100*6.5/12(beginning=6.5 months)

=12*5*65/12

=325

2). int. on drawing=12000*5/100*6/12(middle=6 Months)

=120*5*1/2

=600*1/2

=300

3). int. on drawing=12000*5/100*7.5/12(end=6.5 months)

=5*75

=375