Question

One of the partners in a partnership firm has withdrawn ₹ 9,000 at the end of each quarter, throughout the year. Calculate interest on drawings at the rate of 6% per annum

Answer 1

Number of quarters in a year = 4

Interest drawn per quarter = 9000

Interest drawn in the entire year = 9000 X 4 = 36000

Interest rate = 6% per annum

Total interest = 36000 X 6/100 X 4.5/12

= 810

So, interest on drawings at the rate of 6% per annum would be 810

Answer 2

Interest on Drawing = *36,000×6/100×4.5/12 = 810

*(9,000×4)