Question

Gupta is a partner in a firm. He regularly drew ₹ 800 at the beginning of every month for the six months ending 31st March, 2024. Calculate interest on drawings at 15% p.a.

Answer 1

Since drawings are made at the beginning of every month for 6 months, the average period method will be used.

Total drawings = 800 × 6

= ₹ 4,800

Period = 6 months + 1 month

= 7 months

Average Period = `7/2`

= 3.5 months

Interest on drawings = `4,800 xx 15/100 xx 3.5/12`

= ₹ 210