Kailash is a partner in a firm. He withdrawst 10,000 from the business for personal use during the year ended March 31, 2020. Calculate interest on drawings @ 12% p.a.
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0
Answer:
Interest amount will be 1200 rupees.
Answered by
7
Answer:
Annual drawings = ₹ 10,000 and Interest on drawings = ₹ 600
Explanation:
Given :
Annual withdrawn = ₹ 10,000
In the middle of every month
Interest rate = 12 %
To Find :
Annual drawings and Interest on drawing
Solution :
Intrest = Amount × Rate × (Average period)/12
Average period = 6 mnths
Interest on drawings =
⇒ 10,000 × 12% × 6/12
⇒ 600
Interest on drawings = ₹ 600
Therefore,
Annual drawings = ₹ 10,000 and Interest on drawings = ₹ 600
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