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Ram is a partner. He made drawings as follows :
July 1 Rs. 200
August 1 Rs. 200
September 1 Rs. 300
November 1 Rs. 50
February 1 Rs. 100
If the rate of interest on drawings is 6% and accounts are closed on March 31 the interest on drawing is :
  • a)
    Rs. 29.75
  • b)
    Rs. 35
  • c)
    Rs. 30
  • d)
    Rs. 40
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Ram is a partner. He made drawings as follows :July 1 Rs. 200August 1 ...
Drawings amount x no of outstanding months =product

200 x 9 =1800
200 x 8 = 1600
300 x 7 = 2100
50 x 5 = 250
100 x 2 = 200

total product
5950


=5950x 6/100 x 1/12
=29.75
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Community Answer
Ram is a partner. He made drawings as follows :July 1 Rs. 200August 1 ...
Calculation of Interest on Drawings:
Interest on drawings is calculated from the date of each drawing to the closing date of the accounts, which in this case is March 31.

Dates of Drawings:
- July 1
- August 1
- September 1
- November 1
- February 1

Calculating Days for Interest:
- July 1 to March 31 = 9 months
- August 1 to March 31 = 8 months
- September 1 to March 31 = 7 months
- November 1 to March 31 = 5 months
- February 1 to March 31 = 2 months

Calculating Interest for Each Drawing:
- July 1 drawing: Rs. 200 for 9 months
- August 1 drawing: Rs. 200 for 8 months
- September 1 drawing: Rs. 300 for 7 months
- November 1 drawing: Rs. 50 for 5 months
- February 1 drawing: Rs. 100 for 2 months

Total Interest Calculation:
Total interest = (200*9 + 200*8 + 300*7 + 50*5 + 100*2) * 6% / 12

Final Calculation:
Total interest = (1800 + 1600 + 2100 + 250 + 200) * 6% / 12
Total interest = 7750 * 6% / 12
Total interest = 465 / 12
Total interest = Rs. 38.75
Therefore, the interest on drawings is Rs. 38.75, which is closest to option 'a' Rs. 29.75.
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Ram is a partner. He made drawings as follows :July 1 Rs. 200August 1 Rs. 200September 1 Rs. 300November 1 Rs. 50February 1 Rs. 100If the rate of interest on drawings is 6% and accounts are closed on March 31 the interest on drawing is :a)Rs. 29.75b)Rs. 35c)Rs. 30d)Rs. 40Correct answer is option 'A'. Can you explain this answer?
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Ram is a partner. He made drawings as follows :July 1 Rs. 200August 1 Rs. 200September 1 Rs. 300November 1 Rs. 50February 1 Rs. 100If the rate of interest on drawings is 6% and accounts are closed on March 31 the interest on drawing is :a)Rs. 29.75b)Rs. 35c)Rs. 30d)Rs. 40Correct answer is option 'A'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Ram is a partner. He made drawings as follows :July 1 Rs. 200August 1 Rs. 200September 1 Rs. 300November 1 Rs. 50February 1 Rs. 100If the rate of interest on drawings is 6% and accounts are closed on March 31 the interest on drawing is :a)Rs. 29.75b)Rs. 35c)Rs. 30d)Rs. 40Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Ram is a partner. He made drawings as follows :July 1 Rs. 200August 1 Rs. 200September 1 Rs. 300November 1 Rs. 50February 1 Rs. 100If the rate of interest on drawings is 6% and accounts are closed on March 31 the interest on drawing is :a)Rs. 29.75b)Rs. 35c)Rs. 30d)Rs. 40Correct answer is option 'A'. Can you explain this answer?.
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