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A and B are partners sharing profits equally . A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019 . calculate interest on drawings @5%p.a. for a period of six months?
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A and B are partners sharing profits equally . A drew regularly Rs 400...
Calculation of Interest on Drawings for A:
To calculate the interest on drawings for A, we need to follow the below steps:
Step 1: Calculate the total amount of drawings made by A in six months.
Total Drawings by A = Rs 4000 x 6 = Rs 24,000
Step 2: Calculate the average drawings made by A in six months.
Average Drawings by A = Total Drawings by A / Number of Months = Rs 24,000 / 6 = Rs 4,000
Step 3: Calculate the interest on average drawings made by A for six months at the rate of 5% per annum.
Interest on Drawings by A = Average Drawings by A x 5% x 6 / 12 = Rs 100
Therefore, the interest on drawings for A is Rs 100.
Explanation:
In this question, we are given that A and B are partners sharing profits equally. A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019. We need to calculate the interest on drawings at the rate of 5% per annum for a period of six months.
The interest on drawings is calculated to compensate the firm for the use of funds by the partner. As A has withdrawn Rs 4000 every month for six months, the total amount of drawings made by A is Rs 24,000. To calculate the interest, we first need to find the average drawings made by A in six months, which is Rs 4,000.
Next, we need to calculate the interest on average drawings made by A for six months at the rate of 5% per annum. The formula to calculate the interest on drawings is:
Interest on Drawings = Average Drawings x Rate of Interest x Time / 12
Here, the time period is six months, and the rate of interest is 5% per annum. Therefore, the interest on drawings by A is Rs 100.
Conclusion:
In conclusion, we have calculated the interest on drawings for A at the rate of 5% per annum for a period of six months. The interest is calculated to compensate the firm for the use of funds by the partner. We followed a simple three-step process to calculate the interest on drawings, which involved finding the total drawings, average drawings, and using the formula to calculate the interest.
To calculate the interest on drawings for A, we need to follow the below steps:
Step 1: Calculate the total amount of drawings made by A in six months.
Total Drawings by A = Rs 4000 x 6 = Rs 24,000
Step 2: Calculate the average drawings made by A in six months.
Average Drawings by A = Total Drawings by A / Number of Months = Rs 24,000 / 6 = Rs 4,000
Step 3: Calculate the interest on average drawings made by A for six months at the rate of 5% per annum.
Interest on Drawings by A = Average Drawings by A x 5% x 6 / 12 = Rs 100
Therefore, the interest on drawings for A is Rs 100.
Explanation:
In this question, we are given that A and B are partners sharing profits equally. A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019. We need to calculate the interest on drawings at the rate of 5% per annum for a period of six months.
The interest on drawings is calculated to compensate the firm for the use of funds by the partner. As A has withdrawn Rs 4000 every month for six months, the total amount of drawings made by A is Rs 24,000. To calculate the interest, we first need to find the average drawings made by A in six months, which is Rs 4,000.
Next, we need to calculate the interest on average drawings made by A for six months at the rate of 5% per annum. The formula to calculate the interest on drawings is:
Interest on Drawings = Average Drawings x Rate of Interest x Time / 12
Here, the time period is six months, and the rate of interest is 5% per annum. Therefore, the interest on drawings by A is Rs 100.
Conclusion:
In conclusion, we have calculated the interest on drawings for A at the rate of 5% per annum for a period of six months. The interest is calculated to compensate the firm for the use of funds by the partner. We followed a simple three-step process to calculate the interest on drawings, which involved finding the total drawings, average drawings, and using the formula to calculate the interest.
Community Answer
A and B are partners sharing profits equally . A drew regularly Rs 400...
24000×5/100×3.5/12=350
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A and B are partners sharing profits equally . A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019 . calculate interest on drawings @5%p.a. for a period of six months?
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A and B are partners sharing profits equally . A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019 . calculate interest on drawings @5%p.a. for a period of six months? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profits equally . A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019 . calculate interest on drawings @5%p.a. for a period of six months? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits equally . A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019 . calculate interest on drawings @5%p.a. for a period of six months?.
A and B are partners sharing profits equally . A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019 . calculate interest on drawings @5%p.a. for a period of six months? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A and B are partners sharing profits equally . A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019 . calculate interest on drawings @5%p.a. for a period of six months? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A and B are partners sharing profits equally . A drew regularly Rs 4000 in the beginning of every month for six months ended 30th Sep. , 2019 . calculate interest on drawings @5%p.a. for a period of six months?.
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