Kevin and Francis are partners. Kevin draws Rs. 5,000 at the end of e

1.	Kevin and Francis are partners. Kevin draws Rs. 5,000 at the end of each quarter. Interest on drawings is chargeable at 6% p.a. Calculate interest on drawings for the year ending 31st March 2019 using average period.
Answer» Calculation of interest on drawings of Kevin. Total amount of drawings = 5000 x 4 = 20,000 Interest on drawings = Amount x Rate of Interest x (Average period)/12 = 20,000 x 6/100 x 4.5/12 = Rs. 450

Kevin and Francis are partners. Kevin draws Rs. 5,000 at the end of each quarter. Interest on drawings is chargeable at 6% p.a. Calculate interest on drawings for the year ending 31st March 2019 using average period.

Answer»

Calculation of interest on drawings of Kevin.

Total amount of drawings = 5000 x 4 = 20,000

Interest on drawings = Amount x Rate of Interest x (Average period)/12

= 20,000 x 6/100 x 4.5/12

= Rs. 450