Question

Mr. Ashok Gupta is a partner in a firm. He withdrew the following amounts during the year ended 31st March, 2024:

	₹
April, 30	8,000
June, 30	6,000
Sept., 30	5,000
Dec., 31	12,000
Jan., 31	10,000

Calculate interest on drawings @ 9% p.a. for the year ended on 31st March, 2024.

Answer 1

Simple Method:

Date	Amount (₹)	Period (Months upto March 31)	Interest @ 9% (₹)
April 30	8,000	11	660
June 30	6,000	9	405
Sept 30	5,000	6	225
Dec 31	12,000	3	270
Jan 31	10,000	2	150
Total	41,000		1,710

Working Note:

Calculate interest on drawings @ 9% p.a.:

1. April 30 Amount: ₹ 8,000 for 11 months

= `8,000 xx 9/100 xx 11/12`

= ₹ 660

2. June 30 Amount: ₹ 6,000 for 9 months

= `6,000 xx 9/100 xx 9/12`

= ₹ 405

3. Sept 30 Amount: ₹ 5,000 for 6 months

= `5,000 xx 9/100 xx 6/12`

= ₹ 225

4. Dec 31 Amount: ₹ 12,000 for 3 months

= `12,000 xx 9/100 xx 3/12`

= ₹ 270

5. Jan 31 Amount: ₹ 10,000 for 2 months

= `10,000 xx 9/100 xx 2/12`

= ₹ 150

Interest on Drawings = 660 + 405 + 225 + 270 + 150

= ₹ 1,710