B and M are partners in a firm. They withdrew Rs. 48,000 and Rs. 36,000 respectively during the year evenly in the middle of every month. According to the partnership agreement, interest on drawings is to be charged @ 10% p.a.
Calculate interest on drawings of the partners using the appropriate formula.

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Solution

Calculation of interest on drawings:

B's interest= 48000 * 10/100 * 6/12
= 2400
M's interest= 36000 * 10/100 * 6/12
= 1800
Note: Drawings are made evenly in the middle of every month, hence it is calculated for a period of 6 months.

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Calculation of interest on drawings:B's interest= 48000 * 10/100 * 6/12 = 2400M's interest= 36000 * 10/100 * 6/12 = 1800Note: Drawings are made evenly in the middle of every month, hence it is calculated for a period of 6 months.

Calculation of interest on drawings:

B's interest= 48000 * 10/100 * 6/12
= 2400
M's interest= 36000 * 10/100 * 6/12
= 1800
Note: Drawings are made evenly in the middle of every month, hence it is calculated for a period of 6 months.