FUNDAMENTALS OF PARTNERSHIP FIRM TS GREWAL (2022-23) CBSE

QUESTION: 43

Answer:

Case: 1

Average Period = Months Left after First Drawing + Months Left after Last Drawings / 2

Average Period = 12 + 1 / 2 => 6.5 Months

Interest on Drawings = Monthly Drawings x 12 Months x (10/100) x (6.5/12)

Opposite of the above formula, because we are calculating the amount of drawings.

Monthly Drawings => Interest on Drawing x 1/12 x 100/10 x 12/6.5

Monthly Drawings => 1950 x 1 x 100 x 12 / 12 x 10 x 6.5

Monthly Drawings => 3,000 ₹

Case: 2

Average Period = Months Left after First Drawing + Months Left after Last Drawings / 2

Average Period = 11.5 + 0.5 / 2 => 6 Months

Interest on Drawings = Monthly Drawings x 12 Months x (10/100) x (6/12)

Opposite of the above formula, because we are calculating the amount of drawings.

Monthly Drawings => Interest on Drawing x 1/12 x 100/10 x 12/6

Monthly Drawings => 2400 x 1 x 100 x 12 / 12 x 10 x 6

Monthly Drawings => 4,000 ₹

Case: 3

Average Period = Months Left after First Drawing + Months Left after Last Drawings / 2

Average Period = 11 + 0 / 2 => 5.5 Months

Interest on Drawings = Monthly Drawings x 12 Months x (10/100) x (5.5/12)

Opposite of the above formula, because we are calculating the amount of drawings.

Monthly Drawings => Interest on Drawing x 1/12 x 100/10 x 12/5.5

Monthly Drawings => 2750x 1 x 100 x 12 / 12 x 10 x 5.5

Monthly Drawings => 5,000 ₹