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

QUESTION: 44

Answer:

Case: 1

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

Average Period = 12 + 3 / 2 => 7.5 Months

Interest on Drawings = Monthly Drawings x 4 Quarter x (12/100) x (7.5/12)

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

Quarterly Drawings => Interest on Drawing x 1/4 x 100/12 x 12/7.5

Quarterly Drawings => 1500 x 1 x 100 x 12 / 4 x 12 x 7.5

Quarterly Drawings => 5,000 ₹

Case: 2

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

Average Period = 10.5 + 1.5 / 2 => 6 Months

Interest on Drawings = Monthly Drawings x 4 Quarter x (12/100) x (6/12)

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

Quarterly Drawings => Interest on Drawing x 1/4 x 100/12 x 12/6

Quarterly Drawings => 1200 x 1 x 100 x 12 / 4 x 12 x 6

Quarterly Drawings => 5,000 ₹

Case: 3

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

Average Period = 9 + 0 / 2 => 4.5 Months

Interest on Drawings = Monthly Drawings x 4 Quarter x (12/100) x (4.5/12)

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

Quarterly Drawings => Interest on Drawing x 1/4 x 100/12 x 12/4.5

Quarterly Drawings => 1200 x 1 x 100 x 12 / 4 x 12 x 4.5

Quarterly Drawings => 5,000 ₹