Question

when a fixed amount is withdrawn on the last day of every month for what period the interest on total drawings will be calculated?​

Answer 1

Answer:

If the partner withdraws fixed amount on the end of every month, then the intrest charged is for 5.5 months(average period) on the total amount.

Explanation:

i.e, INTREST ON DRAWINGS = TOTAL DRWAINGS × 5 1/2 (5.5 months)

100 12

Since,

Average Period =

11 MONTHS + 0 MONTHS = 5 1/2 MONTHS

2 (5.5 months)