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Question
A, B and C are partners, their partnership deed provides for interest on drawings at 8% per annum. B withdrew a fixed amount in the middle of every month, and his interest on drawings amounted to ₹ 4,800 at the end of the year. What was the amount of his monthly drawings?
Options
₹ 10,000
₹ 5,000
₹ 1,20,000
₹ 48,000
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Solution
₹ 10,000
Explanation:
Interest on Drawings = `"Total Drawings" xx "Rate"/100 xx 6/12`
4,800 = `"Total Drawings" xx 8/100 xx 6/12`
Total Drawings = `(4,800 xx 100 xx 12)/(8 xx 6)`
= `(57,60,000)/48`
= 1,20,000
The amount of monthly drawings is determined by dividing the total drawings by the number of months in a year.
Monthly Drawings = `"Total Drawings"/12`
= `(1,20,000)/12`
= 10,000
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