Question

N, S & Z are partners. They withdraw a fixed sum of Rs. $2,000$ per month as follows:
N draws at the beginning of each month, S withdraws at the middle of each month and Z withdraws at the end of each month. Rate of interest on drawings is $8\%$ p.a. Interest on drawings for the $3$ partners respectively will be.

• A. $87,80$ & $73$
• B. $1,040,$ $960$ & $880$
• C. $880,960$ & $1,040$
• D. $867,800$ & $733$

Answer 1

Answer: (B)

$1,040,$ $960$ & $880$

Calculation of interest on drawings:
$A=2,000\times 12\times 8\%\times \frac{6.5}{12}=1,040$
$B=2,000\times 12\times 8\%\times \frac{6}{12}=960$
$C=2,000\times 12\times 8\%\times \frac{5.5}{12}=880$.