Question

Brij and Mohan are partners in a firm. They withdrew ₹ 48,000 and ₹ 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.

Answer 1

Since, the drawings are made evenly at the middle of every month, therefore interest on drawings is calculated for a period of six months.

$$\begin{gathered} \mathrm{Interest}\mathrm{on}\mathrm{Brij}\text{'}\mathrm{s}\mathrm{Drawings}=₹\left(48,000\times \frac{10}{100}\times \frac{6}{12}\right)=₹2,400 \\ \mathrm{Interest}\mathrm{on}\mathrm{Mohan}\text{'}\mathrm{s}\mathrm{Drawings}=₹\left(36,000\times \frac{10}{100}\times \frac{6}{12}\right)=₹1,800 \end{gathered}$$