Question

Menon and Thomas are partners in a firm. They-share profits equally. Their monthly drawings are Rs. 2,000 each. Interest on drawings is to be charged @ 10% p.a. Calculate interest on Menon’s drawings for the year 2006, assuming that money is withdrawn: 

(i) in the beginning of every month, 

(ii) in the middle of every month, and 

(iii) at the end of every month.

Answer 1

Case (i) If they withdraw money in the beginning of each month

Case (ii) If they withdraw in the middle of every month

Case (iii) If they withdraw at the end of every month