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Anwar a partner in Akbar Travels withdraw money during the year ending 31st from his capital account for his personal use. Calculate interest on drawings on the following situations if rate of interest is 9% p.a.. a) If he withdrew Rs. 2,500 per month at the beging of the month. b) If the amount with drawn were on 1-6- 2015, Rs.7,500, on 31-8-2015 Rs. 3,000 and 30-9-2015 Rs. 6,500 |
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Answer» a) Total amount withdrawn by Anwar = 2500 x 12 = 30,000 Interest on drawings = Total drawings x Rate x Average Period Average period = \(\frac{12+1}{2} = 6.5\) months Interest on drawings = 30,000 x\(\frac{9}{100}\) x \(\frac{6.5}{12}\) = 1462.50 b)
Interest on drawings = 1,35000 x \(\frac{9}{100}\)= 12,150 Interest for one month = 12,150 x \(\frac{1}{12}\) = 1012.50 |
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