Question

Sushil is a partner in a firm. he withdrew 4000 per month in the middle of every month during the year ended 31st march, 2019 . If interest on drawings is charged @8 o/o per annum the interest charged will be

Answer 1

Given:

• Sushil was a partner in a firm, who withdrew Rs 4,000 per month in the middle of every month.
• Interest on drawings is to be charged at 8% p.a.

To find: The interest on drawings.

Answer:

If a partner withdraws a fixed amount in the middle of every month, the interest on drawings is calculated as follows:

Interest on drawings = Total drawings × (Rate ÷ 100) × (6 ÷ 12)

We have,

• total drawings = Rs 4,000 × 12 = Rs 48,000
• rate = 8

Substituting the values into the formula,

Interest on drawings = Rs 48,000 × (8 ÷ 100) × (6 ÷ 12)

Interest on drawings = Rs 1,920

Therefore, the interest on drawings when Sushil withdraws Rs 4,000 in the middle of every month at the rate of 8% p.a. is Rs 1,920.