Question

Rishi is a partner in a firm. He withdrew the following amounts during the year ended March 31, 2018.

May 01, 2017	Rs 12,000
July 31, 2017	Rs 6,000
September 30, 2017	Rs 9,000
November 30, 2017	Rs 12,000
January 01, 2018	Rs 8,000
March 31, 2018	Rs 7,000

Interest on drawings is charged @ 9% p.a. Calculate interest on drawings.

Answer 1

Product Method

	Drawings × Period	Product
01 May, 2017 to 31 March 2018	12,000 × 11 =	1,32,000
31 July, 2017 to 31 March 2018	6,000 × 8 =	48,000
30 September, 2017 to 31 March 2018	9,000 × 6 =	54,000
30 Nov. 2017 to 31 March 2018	12,000 × 4 =	48,000
01 Jan. 2018 to 31 March 2018	8,000 × 3 =	24,000
31 March 2018 to 31 March 2018	7,000 × 0 =	0
	Sum of Product	3,06,000

Here the formula will be

Interest on Drawings = Product ×

= 3,06,000 ×

= Rs 2,295