Question

Q2. Choose the correct answer from the options given below: Sonia is a partner in a firm. She withdrew *6,000 in the beginning of each quarter during the year ended 31st March, 2019. Interest on her drawing @10% p.a. will be: (a) 1900 (b)*1,200 (c) 1,500 (d) 600​

Answer 1

Given: Sonia is a partner in a firm, who withdrew Rs 6,000 at the beginning of each quarter at a rate of 10% p.a.

To find: The interest on drawings.

Answer:

When a partner withdraws a fixed month at the beginning of every quarter, the interest on drawings is to be calculated as follows:

Interest on drawings = Total drawings × (Rate ÷ 100) × (7.5 ÷ 12)

We have,

• total drawings = Rs 6,000 × 4 [∵ there are 4 quarters] = Rs 24,000
• rate = 10%

Substituting them in the formula,

Interest on drawings = Rs 24,000 × (10 ÷ 100) × (7.5 ÷ 12)

Interest on drawings = Rs 1,500

Therefore, the interest on drawings when Sonia withdraws Rs 6,000 at the beginning of each quarter at the rate of 10% p.a. is (C) Rs 1,500.