Question

A, B and C are partners in a firm. For six months ending 31st March, 2024:

A drew regularly ₹ 15,000 in the beginning of every month. B drew regularly ₹ 20,000 at the end of every month, and C drew regularly ₹ 25,000 in the middle of every month.

Calculate interest on drawings @ 10% p.a. for six months ending 31st March, 2024.

Answer 1

i. Total drawings = 15,000 × 6

= ₹ 90,000

Since drawings are made at the beginning of every month:

Period = 6 + 1

= 7 months

Average period = `7/2`

= 3.5 months

Interest on drawings of A = `90,000 xx 10/100 xx 3.5/12`

= ₹ 2,625

ii. Total drawings = 20,000 × 6

= ₹ 1,20,000

Since drawings are made at the end of every month:

Period = 6 − 1 = 5 months

Average period = `5/2`

= 2.5 months

Interest on drawings of B = `1,20,000 xx 10/100 xx 2.5/12`

= ₹ 2,500

iii. Total drawings = 25,000 × 6

= ₹ 1,50,000

Since drawings are made in the middle of every month:

Average period = 3 months

Interest on drawings of C = `1,50,000 xx 10/100 xx 3/12`

= ₹ 3,750