Question

Rashmi and Ashish are two partners of a firm. Rashmi withdrawn Rs 1,000 at the beginning of each month. Whereas, Ashish withdrawn Rs 2,000 at the end of each month during the whole year. Interest on drawings is charged @ 12% per annul. Calculate the amount of interest at the end of the year.

Answer 1

Total drawings by Rashmi = 100 ×12 

= Rs 12,000

Interest on drawings = 12,000 x \( \frac { 65 }{ 12 } \times \frac { 12 }{ 100 }\) 

= Rs 780

Total drawings by Ashish = 2,000 x 12 

= Rs 26,000

Interest on drawings= 24,000 x \( \frac { 55 }{ 12 } \times \frac { 12 }{ 100 }\) 

= Rs 1,320.