Question

P, Q and R are partners in a firm. You find that :

(i) P drew Rs 6,000 in the beginning of every month for 6 months ending 30th September, 2016.

(ii) Q drew Rs 6,000 at the end of every month for 6 months ending 30th September, 2016.

(iii) R drew Rs 6,000 in the middle of every month for 6 months ending 30th September, 2016.

Calculate interest on drawings at 8% p.a.

Answer 1

Total drawings in all cases $=Rs6,000\times 6\text{months = Rs 36,000}$

$\begin{array}{cccc}& P& Q& R\\ \text{Average}& =\frac{6+1}{2}=3.5months& \frac{5+0}{2}=2.5months& \frac{5.5+0.5}{2}=3months\\ \text{Period}& & & \\ \text{Interest on}& =Rs36,000\times \frac{8}{100}\times \frac{3.5}{12}=& =Rs36,000\times \frac{8}{100}\times \frac{2.5}{12}=& =Rs36,000\times \frac{8}{100}\times \frac{3}{12}=\\ \text{Drawings}& Rs840& Rs600& Rs720\end{array}$