Question

How will you calculate interest on the drawings of equal amount made on the last day of every month of a calendar year?

Answer 1

Drawings can be made by any partner on various time and amounts. If drawings are made by a partner of equal amounts on the last day of every month, then interest on his total drawings for a period will be equal to interest on his total drawings for a period of 5.5 months

For Example:- If Rs 5000 is drawn by X at the end of each month (interest on drawings= 10%p.a)

Interest on drawings = 5,000 * 5 1/2 * 10%

= 5,000*5.5/12*10/100

= 229.17