Question

Menon&Thomas are partners in a firm . they share profits
equally. Their monthly drawings are;Menon; Rs.2,000&
Thomas Rs.4,000. Interest on drawings charged 10% p.a.
Calculate interest of drawings for the year 31st Mar 2020
assuming that money is withdrawn (i) in the beginning of
every month
(ii) in the middle of the every month
(iii) at the end of every month

Answer 1

Solution :

Formula used -

The interest on drawings =

$\sf{Total\:drawing \times Rate\:of\:the\:interest \times {\dfrac{Average\: period}{12}}}$

★ (i). If they withdraw money in the beginning of each month :

• Menon's =

⇒ $\sf{24000 \times \dfrac{10}{100} \times \dfrac{6.5}{12}}$

⇒ Rs. 1,300

• Thomas's =

⇒ $\sf{48000 \times \dfrac{10}{100} \times \dfrac{6.5}{12}}$

⇒ Rs. 2,600

$\rule{300}{1.5}$

★ (ii). If they withdraw in the middle of every month :

• Menon's =

⇒ $\sf{24000 \times \dfrac{10}{100} \times \dfrac{6}{12}}$

⇒ Rs. 1,200

• Thomas's =

⇒ $\sf{48000 \times \dfrac{10}{100} \times \dfrac{6}{12}}$

⇒ Rs. 2,400

$\rule{300}{1.5}$

(iii). If they withdraw at the end of every month :

• Menon's =

⇒ $\sf{24000 \times \dfrac{10}{100} \times \dfrac{5.5}{12}}$

⇒ Rs. 1,100

• Thomas's =

⇒ $\sf{48000 \times \dfrac{10}{100} \times \dfrac{5.5}{12}}$

⇒ Rs. 2,200