## Calculate the amount of Manan’s monthly drawings for the year ended 31st March, 2022, in the following alternative cases when Partnership Deed allows interest on drawings @10% p.a. : (i) If interest on drawings is Rs. 1,950 and he withdrew a fixed amount in the beginning of each month. (ii) If interest on drawings is Rs. 2,400 and he withdrew a fixed amount in the middle of each month. (iii) If interest on drawings is Rs. 2,750 and he withdrew a fixed amount at the end of each month.

SOLUTION

(i) If interest on drawings is Rs. 1,950 and he withdrew a fixed amount in the beginning of each month.
Interest on drawings @ 10% p.a.
Average month 6.5
Annual amount of drawings = (1,950 × 12 × 100) ÷ (6.5 × 10) = 36,000
Monthly amount of drawings = 36,000 ÷ 12 = 3000

(ii) If interest on drawings is Rs. 2,400 and he withdrew a fixed amount in the middle of each month.
Interest on drawings @ 10% p.a.
Average month 6
Annual amount of drawings = (2,400 × 12 × 100) ÷ (6.5 × 10) = 48,000
Monthly amount of drawings = 48,000 ÷ 12 = 4,000

(iii) If interest on drawings is Rs. 2,750 and he withdrew a fixed amount at the end of each month.
Interest on drawings @ 10% p.a.
Average month 5.5
Annual amount of drawings = (2,750 × 12 × 100) ÷ (5.5 × 10) = 60,000
Monthly amount of drawings = 60,000 ÷ 12 = 5,000