question_answer

A, B and C are partners sharing profits equally. A drew regularly Rs. 4,000 in the beginning of every month for the six months ended 30th September, 2016. Calculate interest on A?s drawings @ 5% p.a.

Answer:

Interest on A?s Drawings \[=Total\,Drawings\times \frac{Rate\,of\,Interest}{100}\times \frac{Average\,Period*}{12}\] \[=4,000\times 6\times \frac{5}{100}\times \frac{3.5}{12}=Rs.\,350\]             *Average Period \[=\frac{Months\,Left\,after\,First\,Drawings+Months\,Left\,after\,Last\,Drawings}{2}\]                                     \[=\,\frac{(6+1)}{2}months=3.5\,months\]