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Equal quarterly drawings of Rs 5000 are made at the beginning of each quarter. At eight percent per annum what is interest on drawings?

Answer and explanation

Correct answer: Rs 1000

For quarterly drawings at the beginning average period is seven and half months. Interest on Rs 20000 at eight percent for seven and half months is Rs 1000.

Related tags

Quarterly DrawingsBeginningAverage PeriodCapital AccountsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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