Question

veeru and jai are partners sharing profits equally. veeru drew regularly 4,000 in the beginning of every month for six months ended 30th september, 2020. calculate the interest on drawings @ 5% p.a. for the year ended 31st march, 2021.​

Answer 1

Answer:

Calculation of interest on drawings:

Number of drawings = 6

Amount of each drawing= 4000

Total drawings= 6*4000

                         = 24000

Number of months= [Time left after 1st drawing + Time left after last drawing]/2

                               = [6+1]/2

                               = 3.5 months

Hence,

Interest on drawings= 24000 * 5/100 * 3.5/12

                                  = 350