Commerce Exam > Commerce Questions > If a partner withdraw Rs. 5,000 per month and...
Start Learning for Free
If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month?
Most Upvoted Answer
If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a inte...
Solution:
Given:
- Monthly withdrawal by a partner = Rs. 5,000
- Interest charged by firm on drawing = 10% p.a
To Calculate:
- Interest on drawing if the partner withdraws at the beginning of every month
- Interest on drawing if the partner withdraws at the end of every month
Calculation:
- Annual withdrawal by the partner = Rs. 5,000 x 12 = Rs. 60,000
- Interest charged by the firm on drawing = 10% p.a
- Interest on drawing can be calculated using the formula: (Annual withdrawal x Interest rate) / 12
(a) If the partner withdraws at the beginning of every month:
- Interest on drawing = (Rs. 60,000 x 10%) / 12 = Rs. 500 per month
(b) If the partner withdraws at the end of every month:
- Interest on drawing = (Rs. 60,000 x 10%) / 12 = Rs. 500 per month
Explanation:
- Partners in a firm may withdraw money for personal use, and the firm charges interest on these withdrawals.
- The interest rate charged on drawing is given as 10% p.a, which means the firm charges interest for the entire year.
- To calculate the interest on drawing, we need to first calculate the annual withdrawal by the partner.
- Once we have the annual withdrawal, we can apply the interest rate formula to calculate the interest on drawing.
- Whether the partner withdraws at the beginning or end of the month does not affect the interest on drawing calculation, as the interest is charged for the entire year and is divided into monthly installments.
Conclusion:
- The interest on drawing for a partner who withdraws Rs. 5,000 per month and the firm charges 10% p.a interest on drawing is Rs. 500 per month, whether the withdrawal is made at the beginning or end of the month.
Given:
- Monthly withdrawal by a partner = Rs. 5,000
- Interest charged by firm on drawing = 10% p.a
To Calculate:
- Interest on drawing if the partner withdraws at the beginning of every month
- Interest on drawing if the partner withdraws at the end of every month
Calculation:
- Annual withdrawal by the partner = Rs. 5,000 x 12 = Rs. 60,000
- Interest charged by the firm on drawing = 10% p.a
- Interest on drawing can be calculated using the formula: (Annual withdrawal x Interest rate) / 12
(a) If the partner withdraws at the beginning of every month:
- Interest on drawing = (Rs. 60,000 x 10%) / 12 = Rs. 500 per month
(b) If the partner withdraws at the end of every month:
- Interest on drawing = (Rs. 60,000 x 10%) / 12 = Rs. 500 per month
Explanation:
- Partners in a firm may withdraw money for personal use, and the firm charges interest on these withdrawals.
- The interest rate charged on drawing is given as 10% p.a, which means the firm charges interest for the entire year.
- To calculate the interest on drawing, we need to first calculate the annual withdrawal by the partner.
- Once we have the annual withdrawal, we can apply the interest rate formula to calculate the interest on drawing.
- Whether the partner withdraws at the beginning or end of the month does not affect the interest on drawing calculation, as the interest is charged for the entire year and is divided into monthly installments.
Conclusion:
- The interest on drawing for a partner who withdraws Rs. 5,000 per month and the firm charges 10% p.a interest on drawing is Rs. 500 per month, whether the withdrawal is made at the beginning or end of the month.
Community Answer
If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a inte...
In first case =5000*10/100*6.5/12=270
in second case= 5000*10/100*5.5/12=229
hope it will help you
in second case= 5000*10/100*5.5/12=229
hope it will help you
Attention Commerce Students!
To make sure you are not studying endlessly, EduRev has designed Commerce study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Commerce.
|
Explore Courses for Commerce exam
|
|
Similar Commerce Doubts
Top Courses for CommerceView all
If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month?
Question Description
If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month?.
If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month?.
Solutions for If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month? in English & in Hindi are available as part of our courses for Commerce.
Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
Here you can find the meaning of If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month? defined & explained in the simplest way possible. Besides giving the explanation of
If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month?, a detailed solution for If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month? has been provided alongside types of If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month? theory, EduRev gives you an
ample number of questions to practice If a partner withdraw Rs. 5,000 per month and firm charge 10% p.a interest on drawing.calculate interest on drawing:- if he withdraw at the beginning of every month (b) if he withdraw At the end of every month? tests, examples and also practice Commerce tests.
|
|
Explore Courses for Commerce exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup