Ramesh and Rakesh are partners sharing profits and losses in the ratio of 3/2 . mesh drew regularly 800 on 1st of every month for 6 months ending 30th September 13. Calculate Interest on drawings of Ramesh at 8% per annum under Product Method.
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Step-by-step explanation:
PRODUCT METHOD
Dates Amount(A) No.of months up to 31st march.2108(B) Product
C= A*B
1/5/17 2000 11 22,000
1/8/17 5000 8 40,000
30/9/17 2000 6 12,000
31/1/18 6000 2 12,000
31/3/18 2000 0 0
Total 17000 86,000
Interest on Drawings= 86,000*15%*1/12 =1075
Simple Method
Date Amount No.of months up to 31st march,2018 Interest@15%
1/5/17 2000 11 275
(2000*15%*11/12)
1/8/17 5000 8 500
(5000*15%*8/12)
30/9/17 2000 6 150
(2000*15%*6/12)
31/1/18 6000 2 150
(6000*15%*2/12)
31/3/18 2000 0 0
Total 1075
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