Question

The partnership deed provided that interest on partners' drawings will be charged @ 9% p.a. During the year
ended March, 2018, a partner withdraw * 5,000 in the beginning of each quarter. In this case the amount of
interest on partners drawings will be-
(a) * 1,800
(b) ₹900
(c) 7 1,350
(d) 1,125.
​

Answer 1

Explanation:

avg period= 12+3/ 2

=7.5

interest on drawing =5000*4 * 9% * 7.5/12

=20,000*9%*7.5/12

=1125/-

Answer 2

Answer:

(d). 1,125

Interest on Drawings will be ₹ 1,125

Explanation:

If drawings are made in the beginning of each quarter :

Average period = 7.5

Total amount of drawings = 5,000 x 4 = ₹ 20,000

Interest on drawings = Total amount of drawings × Rate of interest × Average period / 12

Interest on drawings =

$\sf{Total \: amount \: of \: drawings \: \times \: \dfrac{Rate \: of \: interest}{100} \: \times \: \dfrac{Average \: period}{12}}$

$\sf{\longrightarrow{20000 \: \times \: \dfrac{9}{100} \times \: \dfrac{7.5}{12}}}$

$\sf{\longrightarrow{1125}}$

Interest on drawings = 1,125

∴ Interest on Drawings will be ₹ 1,125