Calculate the interest on drawings at 10% per annum for the year ended 31st March 2016 of Mannan a partner in each of the following alternative cases a. If Mannan withdrew a total sum of RS.36000 in equal installment in the beginning of each month b. If Mannan withdrew a total sum of Rs.48000 in equal installment in the middle of each month. c. If Mannan withdrew a total sum of Rs.60000 in equal installment at the end of each month.?

Question

Answer

**Calculation of interest on drawings:**

To calculate the interest on drawings, we need to consider the amount withdrawn by Mannan, the time period for which the amount was withdrawn, and the interest rate of 10% per annum.

a. If Mannan withdrew a total sum of Rs.36000 in equal installments at the beginning of each month:

In this case, Mannan would have withdrawn Rs.3,000 each month for a total of 12 months. The interest on each installment can be calculated as follows:

Interest on each installment = (Amount withdrawn x Interest rate) / 12
= (3000 x 10%) / 12
= Rs. 250

Therefore, the total interest on drawings for the year would be Rs. 250 x 12 = Rs. 3000.

b. If Mannan withdrew a total sum of Rs.48000 in equal installments in the middle of each month:

In this case, Mannan would have withdrawn Rs.4,000 each month for a total of 12 months. The interest on each installment can be calculated as follows:

Interest on each installment = (Amount withdrawn x Interest rate) / 12
= (4000 x 10%) / 12
= Rs. 333.33 (approx.)

Therefore, the total interest on drawings for the year would be Rs. 333.33 x 12 = Rs. 4000 (approx.)

c. If Mannan withdrew a total sum of Rs.60000 in equal installments at the end of each month:

In this case, Mannan would have withdrawn Rs.5,000 each month for a total of 12 months. The interest on each installment can be calculated as follows:

Interest on each installment = (Amount withdrawn x Interest rate) / 12
= (5000 x 10%) / 12
= Rs. 416.67 (approx.)

Therefore, the total interest on drawings for the year would be Rs. 416.67 x 12 = Rs. 5000 (approx.)

**Summary:**
a. If Mannan withdrew Rs.36000 in equal installments at the beginning of each month, the interest on drawings for the year would be Rs.3000.
b. If Mannan withdrew Rs.48000 in equal installments in the middle of each month, the interest on drawings for the year would be Rs.4000 (approx.).
c. If Mannan withdrew Rs.60000 in equal installments at the end of each month, the interest on drawings for the year would be Rs.5000 (approx.).

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