Question : X and Y are partners. X draws a fixed amount at the end of each quarter. Interest on drawings is charged @ 10% p.a. At the end of the year, interest on drawings (X) amounts to 8,580. Drawings of X were per quarter?
Option 1: 44,400 per quarter
Option 2: 57,200 per quarter
Option 3: 22,800 per quarter
Option 4: none of these.
Correct Answer: 57,200 per quarter
Solution : Answer = 57,200 per quarter Interest on drawings=Drawings$\times \frac{Rate}{100} \times \frac{Average time}{12}$. 8580=Drawings$\times \frac{10}{100} \times \frac{4.5}{12}$. Drawings=2,28,800. Hence, the correct option is 2.
Question : C and D are partners. C draws a fixed amount at the beginning of every month. Interest on drawings is charged @ 10% p.a. At the end of the year, interest on C's drawings amounts to Rs 2,860. Drawings of C were:
Question : In the absence of a partnership agreement, interest on partners' drawings is charged:
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