Question

Gupta is a partner in a firm. He regularly drew ₹ 800 at the end 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 end of every month for 6 months, the average period method will be used.

Total drawings = 6 × 800

= ₹ 4,800

For drawings at the end of every month:

Period = 6 − 1

= 5 months

Average Period = `5/2`

= 2.5 months

Interest on drawings = `4,800 xx 15/100 xx 2.5/12`

= ₹ 150