Mohan draws 10,000 per month on the last day of every month for personal use. If interest is to be charged at 5% p.a. Interest chargeable from him in the accounting year will be:
a) 3,250 b) 2,750
c)3,000 d)3,500
Please provide answer with explanation
sorry
it's not
Isha
Answers
Answer:
correct✅ option is b) 2750
Explanation:
Interest on drawing = Total drawings x rate of interest x average period/12
= 10,000 x 12 x 5/100 x 5.5/12 (WN 1)
= 12,0000 x 5% x 5.5/12
= RS-2750.
Answer:
Correct option is 2750
Explanation:
Withdrawn amount = 10,000 per month
Time of withdrawal = On the last day of every month
Rate of interest = 5% p.a.
Interest on drawings = ??
Solution :
Total amount of drawings = 10,000 × 12
Total amount of drawings = 1,20,000
If drawings are made at the end of every month :
Average period = 5.5
Interest on drawings =\sf{\longrightarrow{Amount \: of \: drawings \: \times \: \dfrac{Rate \: of \: interest}{100} \: \times \: \dfrac{Average \: period}{12}}}⟶Amountofdrawings×
100
Rateofinterest
×
12
Averageperiod
\longrightarrow{\sf{1,20,000 \: \times \: \dfrac{5}{100} \: \times \: \dfrac{5.5}{12}}}⟶1,20,000×
100
5
×
12
5.5
\sf{\longrightarrow{2,750}}⟶2,750
Interest on drawings = 2,750
∴ Option b) 2,750