CA Foundation Exam > CA Foundation Questions > What time would be taken into consideration i...
Start Learning for Free
What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?
- a)7 months
- b)6 months
- c)5 months
- d)6.5 months
Correct answer is option 'D'. Can you explain this answer?
Most Upvoted Answer
What time would be taken into consideration if equal monthly amount is...
Calculation of Drawings with Equal Monthly Amount
In a business, the owner may decide to draw a fixed amount of money every month as a salary. This is known as drawings. If the same amount is drawn every month at the beginning of each month, the calculation of drawings becomes relatively simple. Let us understand how to calculate the time period taken into consideration for such a scenario.
Formula for Calculation
The formula for calculating the time period taken into consideration when equal monthly amounts are drawn as drawings at the beginning of each month is:
Time Period = (Total Drawings / Monthly Drawings) - 1
Explanation of Formula
Let us assume that the total drawings made by the owner are Rs. 65,000 and the monthly drawings are Rs. 10,000. Using the above formula, we can calculate the time period taken into consideration for the calculation of drawings as follows:
Time Period = (65,000 / 10,000) - 1
Time Period = 6.5 months
Therefore, the correct answer to the question is option D, which states that 6.5 months would be taken into consideration for the calculation of drawings if equal monthly amounts are drawn at the beginning of each month.
Conclusion
The calculation of drawings is an important aspect of business accounting. By using the formula mentioned above, one can easily calculate the time period taken into consideration for the calculation of drawings when equal monthly amounts are drawn at the beginning of each month. It is important to keep track of such transactions to ensure proper financial management and avoid any discrepancies.
In a business, the owner may decide to draw a fixed amount of money every month as a salary. This is known as drawings. If the same amount is drawn every month at the beginning of each month, the calculation of drawings becomes relatively simple. Let us understand how to calculate the time period taken into consideration for such a scenario.
Formula for Calculation
The formula for calculating the time period taken into consideration when equal monthly amounts are drawn as drawings at the beginning of each month is:
Time Period = (Total Drawings / Monthly Drawings) - 1
Explanation of Formula
Let us assume that the total drawings made by the owner are Rs. 65,000 and the monthly drawings are Rs. 10,000. Using the above formula, we can calculate the time period taken into consideration for the calculation of drawings as follows:
Time Period = (65,000 / 10,000) - 1
Time Period = 6.5 months
Therefore, the correct answer to the question is option D, which states that 6.5 months would be taken into consideration for the calculation of drawings if equal monthly amounts are drawn at the beginning of each month.
Conclusion
The calculation of drawings is an important aspect of business accounting. By using the formula mentioned above, one can easily calculate the time period taken into consideration for the calculation of drawings when equal monthly amounts are drawn at the beginning of each month. It is important to keep track of such transactions to ensure proper financial management and avoid any discrepancies.
Free Test
FREE
| Start Free Test |
Community Answer
What time would be taken into consideration if equal monthly amount is...
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer?
Question Description
What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer?.
What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer?.
Solutions for What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice What time would be taken into consideration if equal monthly amount is drawn as drawings at the beginning of each month?a)7 monthsb)6 monthsc)5 monthsd)6.5 monthsCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
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