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Calculate interest on drawings charged 12percentage ( 1 ) partner withdrew ₹ 1000 per month in the beginning of every month?
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**Calculating Interest on Drawings**
In order to calculate interest on drawings charged at a rate of 12%, we need to consider the amount of monthly withdrawal made by the partner and the time period for which the withdrawal was made. Let's break down the calculation step by step:
1. Determine the Monthly Withdrawal:
- The partner withdrew ₹ 1000 per month in the beginning of every month. This means that at the start of each month, the partner took out ₹ 1000 from the partnership funds.
2. Calculate the Annual Withdrawal:
- To calculate the annual withdrawal, we need to multiply the monthly withdrawal by the number of months in a year. Since the partner withdrew ₹ 1000 every month, the annual withdrawal would be ₹ 1000 x 12 = ₹ 12,000.
3. Calculate the Interest on Drawings:
- The interest on drawings is charged at a rate of 12%. To calculate the interest, we need to multiply the annual withdrawal by the interest rate. In this case, the interest on drawings would be ₹ 12,000 x 0.12 = ₹ 1,440.
4. Determine the Time Period:
- The time period for which the withdrawal was made needs to be considered. In this case, the partner withdrew ₹ 1000 at the beginning of every month, which indicates a monthly interval.
5. Calculate the Monthly Interest:
- To find the monthly interest, we need to divide the annual interest on drawings by the number of months in a year. In this case, the monthly interest would be ₹ 1,440 / 12 = ₹ 120.
**Explanation:**
The partner withdrew ₹ 1000 per month in the beginning of every month, resulting in an annual withdrawal of ₹ 12,000. The interest on drawings is charged at a rate of 12%, which amounts to ₹ 1,440 for the year. Since the withdrawal was made on a monthly basis, the monthly interest would be ₹ 120.
It is important to note that interest on drawings is charged as a means to compensate the partnership for the loss of funds. This interest is typically deducted from the partner's share of profits or added to their capital account. The calculation above provides a clear understanding of how to determine the interest on drawings charged at 12% in the given scenario.
In order to calculate interest on drawings charged at a rate of 12%, we need to consider the amount of monthly withdrawal made by the partner and the time period for which the withdrawal was made. Let's break down the calculation step by step:
1. Determine the Monthly Withdrawal:
- The partner withdrew ₹ 1000 per month in the beginning of every month. This means that at the start of each month, the partner took out ₹ 1000 from the partnership funds.
2. Calculate the Annual Withdrawal:
- To calculate the annual withdrawal, we need to multiply the monthly withdrawal by the number of months in a year. Since the partner withdrew ₹ 1000 every month, the annual withdrawal would be ₹ 1000 x 12 = ₹ 12,000.
3. Calculate the Interest on Drawings:
- The interest on drawings is charged at a rate of 12%. To calculate the interest, we need to multiply the annual withdrawal by the interest rate. In this case, the interest on drawings would be ₹ 12,000 x 0.12 = ₹ 1,440.
4. Determine the Time Period:
- The time period for which the withdrawal was made needs to be considered. In this case, the partner withdrew ₹ 1000 at the beginning of every month, which indicates a monthly interval.
5. Calculate the Monthly Interest:
- To find the monthly interest, we need to divide the annual interest on drawings by the number of months in a year. In this case, the monthly interest would be ₹ 1,440 / 12 = ₹ 120.
**Explanation:**
The partner withdrew ₹ 1000 per month in the beginning of every month, resulting in an annual withdrawal of ₹ 12,000. The interest on drawings is charged at a rate of 12%, which amounts to ₹ 1,440 for the year. Since the withdrawal was made on a monthly basis, the monthly interest would be ₹ 120.
It is important to note that interest on drawings is charged as a means to compensate the partnership for the loss of funds. This interest is typically deducted from the partner's share of profits or added to their capital account. The calculation above provides a clear understanding of how to determine the interest on drawings charged at 12% in the given scenario.
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Calculate interest on drawings charged 12percentage ( 1 ) partner withdrew ₹ 1000 per month in the beginning of every month?
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Calculate interest on drawings charged 12percentage ( 1 ) partner withdrew ₹ 1000 per month in the beginning 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 Calculate interest on drawings charged 12percentage ( 1 ) partner withdrew ₹ 1000 per month in the beginning of every month? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate interest on drawings charged 12percentage ( 1 ) partner withdrew ₹ 1000 per month in the beginning of every month?.
Calculate interest on drawings charged 12percentage ( 1 ) partner withdrew ₹ 1000 per month in the beginning 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 Calculate interest on drawings charged 12percentage ( 1 ) partner withdrew ₹ 1000 per month in the beginning of every month? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Calculate interest on drawings charged 12percentage ( 1 ) partner withdrew ₹ 1000 per month in the beginning of every month?.
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