1.

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

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a) Total amount withdrawn by Anwar = 2500 x 12 = 30,000 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\(\frac{9}{100}\)\(\frac{6.5}{12}\) = 1462.50

b)

DateAmount of drawingsMonths for which interest to be chargedProduct
01-06-2015750010(June to march)75,000
31-8-201530007(sept. to March)21,000
30-9-201565006 (October to March) Total39,000
135000

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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