Menon and Thomas are Partners in a Firm. They Share Profits Equally - Bzziii.com
Menon and Thomas are partners in a firm. They share profits equally. Their monthly drawings are Rs 2,000 each. Interest on drawings is to be charged @ 10% p.a. Calculate interest on Menon’s drawings for the year 2006, assuming that money is withdrawn: (i) in the beginning of every month, (ii) in the middle of every month, and (iii) at the end of every month.
Calculation of interest on Menon’s drawings for the year 2006
Cash (I) Menon withdrawn money in the beginning of every month
= Total Drawings `\times` Rate `\times` `frac{13}{2\times12}`
= Rs. 24,000 `\times` `10/100` `\times` `frac{13}{2\times12}`
= Rs. 1,300.
Cash (II) Menon withdrawn money in the middle of every month
Cash (II) Menon withdrawn money in the middle of every month
= Rs. 24,000 `\times` `10/100` `\times` `frac{6}{12}`
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