Question

A, B and C were partners in a firm. As per the partnership deed, interest on drawings is to be charged @ 10% per annum. B withdrew a fixed amount at the end of every quarter. Interest on his drawings amounted to ₹ 9,000. The amount of his drawings per quarter were ______.

Options

• ₹ 2,40,000

• ₹ 1,80,000

• ₹ 60,000

• ₹ 80,000

Answer 1

A, B and C were partners in a firm. As per the partnership deed, interest on drawings is to be charged @ 10% per annum. B withdrew a fixed amount at the end of every quarter. Interest on his drawings amounted to ₹ 9,000. The amount of his drawings per quarter were ₹ 60,000.

Explanation:

Average Period = `("Time left after first drawing" + "Time left after last drawing")/2`

= `(9 + 0)/2`

= 4.5 months

Calculate Total Drawings:

Interest on Drawings = `"Total Drawing" xx "Rate of Interest" xx "Average Period"/12`

`9,000 = "Total Drawing" xx 10/100 xx 4.5/12`

Total Drawing = `(9,000 xx 100 xx 12)/(10 xx 4.5)`

Total Drawing = `(9,000 xx 100 xx 12)/(45)`

Total Drawing = 2,40,000

Calculate Drawings per Quarter:

Drawing per Quarter = `"Total Drawing"/"Number of Quarter"`

Drawing per Quarter = `(2,40,000)/4`

= 60,000