Question

A and B, two partners of a firm, have drawn the following amounts from the firm in the year ending 31st March, 2013. Interest at $6\%$ p.a. is charged on all drawings. Calculate interest chargeable by using Average due date system.

• A. $73.91$
• B. $73.49$
• C. $74.10$
• D. $72.90$

Answer 1

Answer: (B)

$73.49$

Considering $1^{st}$ july as the starting date.

	Dates	Rs.	No.of days from $1^{st}$ july	Products
	$1^{st}$ july	$500$	$0$	$0$
A	${30}^{th}$ sept	$800$	$3$	$2400$$
	$1^{st}$ Nov	$1000$	$4$	$4000$
	${28}^{th}$ Feb	$400$	$8$	$3200$
		$2700$		$9600$

Average due date$=1^{st}$ july+$\frac{96000}{2700}$

Interest is charged from ${17}^{th}Octto$31^{st}$Mar=$5.44$ months

$I=Rs.2700\times \frac{6}{100}\times \frac{5.44}{12}=Rs.73.49$