Question

Mr Yash, a partner in the firm withdrew 24,000 at the end of every half year. The interest on such drawings will be charged @ 12% p.a. The amount of interest on drawings will be:
(a) 2,880 (b) 1,440 (c) 2,400 (d) 2,000​

Answer 1

Answer:

Calculation of interest on drawings:

B's interest= 48000 * 10/100 * 6/12

= 2400

M's interest= 36000 * 10/100 * 6/12

= 1800

Note: Drawings are made evenly in the middle of every month, hence it is calculated for a period of 6 months.

Answer 2

Given:

Mr Yash's drawings = Rs. 24000 at the end of each half-year

Interest charged on drawings = 12% p.a.

To find:

Amount of interest charged on drawings

Solution:

Mr Yash's drawings = Rs. 24000 at the end of each half-year

Interest charged on drawings = 12% p.a.

$interest \: on \: drawings \\ = \frac{12}{100} \times 24000 \times \frac{6}{12}$

Interest on drawings is here charged on only half the year because Mr Yash has drawn Rs. 24000 at the end of the half-year.

For example, let's say that the year ends on December 31st every year.

Since Mr Yash withdraws Rs.24000 end of every half-year, his first drawing would be on June 31st.

His second drawing would be on 31st December which is also the closing date so hence the interest for it is not calculated right now.

so,

$interest \: on \: drawings= 2880 \times \frac{6}{12}$

$interest \: on \: drawings = 1440$

Therefore the Interest for drawings charged to Mr Yash is Rs. 1440.

Therefore the Interest for drawings charged to Mr Yash is Rs. 1440. A correct answer is an option (b)