Question

Ram and Shyam were partners. Ram withdrew ₹ 18,000 at the beginning of each half year. Interest on drawings is chargeable @ 10% p.a. Calculate interest on the drawings for the year ending 31^st December 2018 using the average period.

Answer 1

Total amount of drawing: 18,000 × 2 = 36,000

Interest on drawings = Amount × Rate of Interest × `"Average period"/12`

= `36,000 xx 10/100 xx 9/12`

= ₹ 2,700