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X has made the following drawings during 2014-15. Calculate interest on drawings @90% .

1.Rs. 4000 withdrawn by X on the first day of every month with effect from 1-5-14 for four month

2. From September 2014 he withdraw RS 6000 pm in the middle for each month till December

3. On 1-2-15 he, withdrew RS 10000

4. On 31-3-15 he withdraw RS 5000.

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CBSE CBSE/Class 11/Commerce/Accountancy

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Experienced and Certified Economics and Commerce teacher with 10 years experience in teaching.

Yes, the interest rest must be 9% to achieve the correct answer,. May be a typing mistake.
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MNC Account Executive with 7 year Experience With MBA Finance With CA inter

From May to Aug'14 - 4000/per Month = 16000 from Sep to Dec'14 - 6000/per month = 24000 on 01.02.2015 = 10000 on 31.05.2015 = 5000 Total = 55000 Total drawing During The period... read more

From May to Aug'14 - 4000/per Month = 16000

from Sep to Dec'14 - 6000/per month  = 24000

on 01.02.2015                                   = 10000

on 31.05.2015                                   =   5000

                                       Total          = 55000 

 

Total drawing During The period 2014-15 is Rs. 55000 and Interest charged @ 90% on Drawn amount of Rs. 55000 *90/100 =Rs. 49500

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interest 9%
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Pgt Accountancy and business studies and economics.

It seems like there is a problem in typing the question interest on drawings may be charged @9% and not 90%.
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1. As x withdraw on the 1st day, then the average period will be = 4+1/12=15/36 Therefore , interest = 4000×15/36×90/100= 1500 2. The average period will be, =3.5+0.5/12=1/3 Therefore interest=6000*1/3*90/100=1800 3. 2+1/12=1/4 Therefore interest=10000*1/4*90/100=2250 4. 0+0/12=0 Therefore... read more

1. As x withdraw on the 1st day, then the average period will be 

= 4+1/12=15/36

Therefore , interest = 4000×15/36×90/100= 1500

2. The average period will be,

=3.5+0.5/12=1/3

Therefore interest=6000*1/3*90/100=1800

3. 2+1/12=1/4

Therefore interest=10000*1/4*90/100=2250

4. 0+0/12=0

Therefore interest=5000*0*90/100=0.

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Cost Accountant with Doctorate, 20 years experienced tutor for Accountancy (XI & XII, All boards)

In this because the drawings are of unequal amount and unequal interval, the product method is followed. Drawings Duration Product May-14 4000 11 44000 Jun-14 4000 10 40000 Jul-14 4000 9 36000 Aug-14 4000 8 32000 Sep-14 6000 6.5 39000 Oct-14 6000 5.5 33000 Nov-14 6000 4.5 27000 Dec-14 6000 3.5 21000 Jan-15 ... read more

In this because the drawings are of unequal amount and unequal interval, the product method is followed.

 

Drawings

Duration

Product

May-14

4000

11

44000

Jun-14

4000

10

40000

Jul-14

4000

9

36000

Aug-14

4000

8

32000

Sep-14

6000

6.5

39000

Oct-14

6000

5.5

33000

Nov-14

6000

4.5

27000

Dec-14

6000

3.5

21000

Jan-15

   

0

Feb-15

10000

2

20000

Mar-15

5000

0

0

TOTAL PRODUCT

292000

Interest on Drawings @ 9% p.a.                                

                = Total Product * Rate/100*1/12                              

                =292000*9/100*1/12                     

                                               

Interest on Drawings @ 9% p.a for the year 2014-15 is:  

                 ₹ 2,190                                

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22 year's Experience Post Graduate (M.Com) Commerce Teacher for Accountancy, Economics, Maths&Stats.

90% is a typing mistake. It may be 9%. The basic formula is: Amount of drawings*Rate of interest on drawings*(months from date of drawings to end if the year)*1/12.
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Do the things differently with concepts

8100
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Accountancy, Business Studies, Commerce, NISM Cerfication

Few observations- The rates of interest are 90% is not ok. Seems to be your homework. I will not answer, but will surely help you to get the correct answer through the right method. Is your interest is only to solve the numerical? It is one of the right questions to know the fundamentals very clearly...
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Logistics and Finance Trainer with 4+ years of work experience

49500
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