A and B are partners sharing profits equally. A drew regularly Rs. 4,000 in the beginning of every month for six months ended 30th September, 2019. Calculate interest on drawings @ 5% p.a. for a period of six months.

Solution

Amount of drawing= 4000
No. of drawings= 6
Total amount of drawing=24,000
Average month = time lift after first drawing + time lift after last drawing ÷2
= 6+1÷2=3.5
Interest on drawing= total drawing×Rate of drawing/100×Average month / 12
=24,000×5/100×3.5/12=350

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