Mr. Ram is a partner in a form He draw RS. 3000 from the firm in the beginning of every monthinterest on drawings is to be charged at the rate of 9% for annum calculate interest on drawingsfor the year 2022
Question
Mr. Ram is a partner in a form He draw RS. 3000 from the firm in the beginning of every monthinterest on drawings is to be charged at the rate of 9% for annum calculate interest on drawingsfor the year 2022
Solution
To calculate the interest on Mr. Ram's drawings for the year 2022, we need to follow these steps:
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First, we need to understand that Mr. Ram draws Rs. 3000 at the beginning of each month. This means that he will have drawn this amount 12 times in a year.
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The total amount drawn by Mr. Ram in a year is Rs. 3000 * 12 = Rs. 36,000.
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The interest rate is 9% per annum.
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However, since the money is withdrawn at the beginning of each month, the average period of the drawing will be 6.5 months (as it is halfway through the year).
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So, the interest on the drawings is calculated using the formula: Interest = Total Drawings * Rate of Interest * Average Period of Drawings / 12 * 100.
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Substituting the values into the formula, we get: Interest = 36,000 * 9/100 * 6.5/12 = Rs. 1,755.
So, the interest on Mr. Ram's drawings for the year 2022 is Rs. 1,755.
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