Bharam is partner in a firm. He withdraws Rs 3,000 at the starting of each month. The books of the firm closes on March 31 every year. Calculate interest on drawings if the rate of interest is 10% pa.

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Solution

Interest on Bharam's Drawings (By Average Method)

$\Rightarrow (3, 000 \times 12) \times \frac{10}{100} \times \frac{6 \frac{1}{2}}{12} \Rightarrow 36, 000 \times \frac{10}{100} \times \frac{13}{2 \times 12} = R s 1, 950$

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Bharam is partner in a firm. He withdraws Rs 3,000 at the starting of each month. The books of the firm closes on March 31 every year. Calculate interest on drawings if the rate of interest is 10% pa.

Interest on Bharam's Drawings (By Average Method) ⇒(3,000×12)×10100×61212⇒36,000×10100×132×12=Rs 1,950

Interest on Bharam's Drawings (By Average Method)

$\Rightarrow (3, 000 \times 12) \times \frac{10}{100} \times \frac{6 \frac{1}{2}}{12} \Rightarrow 36, 000 \times \frac{10}{100} \times \frac{13}{2 \times 12} = R s 1, 950$