Question

A and B are partners. B draws a fixed amount at the end of every quarter. Interest on drawings is charged @ 15% p.a. At the end of the year, interest on B’s drawings amounted to ₹ 9,000. Drawings of B were ______.

Options

• ₹ 24,000 per quarter

• ₹ 40,000 per quarter 

• ₹ 30,000 per quarter

• ₹ 80,000 per quarter

Answer 1

A and B are partners. B draws a fixed amount at the end of every quarter. Interest on drawings is charged @ 15% p.a. At the end of the year, interest on B’s drawings amounted to ₹ 9,000. Drawings of B were ₹ 40,000 per quarter.

Explanation:

Interest on drawings = `"Total drawings" xx "Rate of interest"/100 xx "Average period"/12`

9,000 = `"Total drawings" xx 15/100 xx 4.5/12`

Total drawings = `(9,000 xx 100 xx 12)/(15 xx 4.5)`

Total drawings = `(1,08,00,000)/67.5`

Total drawings = 1,60,000

Drawings per quarter = `(1,60,000)/4`

= 40,000

The drawings of B were ₹ 40,000 per quarter.