Question

Calculate the rate of interest on drawings in the following case:

Charu and Suruchi are partners in a firm. Suruchi withdrew ₹ 12,000 in the beginning of each quarter and interest on drawings was calculated at ₹ 2,700 at the end of the year.

Answer 1

Drawings are made on:

• 1st April → 12 months
• 1st July → 9 months
• 1st October → 6 months
• 1st January → 3 months

Average period = 7.5 months

Total drawings = ₹ 12,000 × 4 = ₹ 48,000

Let the rate of interest = R%

`2700 = (48,000 xx R xx 7.5)/(100 xx 12)`

2700 = 300 R

R = 9%