Question

Mr. A is a partner in a firm. He draws Rs 9000 from the firm in the middle of every month. Interest on drawing is to be charged at 10% p.a Calculate interest on drawing for the year ending 2020.

Answer 1

Answer:

9000×12=108'000;

108'000×10/100×6/12=5400

Answer 2

Answer:

Interest on Drawings = Rs 5,400

Explanation:

Given :

• Mr. A draws Rs 9,000 from the firm in the middle of every month

• Interest on Drawings is to be charged at 10% p.a

To find :

• Calculate Interest on Drawings for the year ending 2020

Solution :

Interest on Drawings = Total amount of Drawings × Rate of Interest × Average period / 12

Interest on Drawings =

$\sf{Total \: amount \: of \: Drawings \: \times \: \dfrac{Rate \: of \: Interest}{100} \: \times \: \dfrac{Average \: period}{12}}$

Total amount of Drawings =

$\longrightarrow$ 9,000 × 12

$\longrightarrow$ 1,08,000

Total amount of Drawings = 1,08,000

Interest on Drawings =

$\longrightarrow{\sf{1,08,000 \: \times \: \dfrac{10}{100} \: \times \: \dfrac{6}{12}}}$

$\longrightarrow$ 5,400

Interest on Drawings = Rs 5,400

Therefore,

Interest on Drawings = Rs 5,400