A, a partner in a firm, is drawing ₹ 500 regularly on the 16th of every month. He will have to pay interest at the given rate in a year on ₹ 6000 for the total period of
6 months
When a partner draws an equal amount regularly, interest on drawings is charged on the total drawings for the average period for which the money stays withdrawn during the year.
Drawing on the 16th of each month is treated as drawing in the middle of each month. The first drawing (16 January) is out for about \(11.5\) months to 31 December and the last (16 December) for about \(0.5\) month.
\(\text{Average period} = \dfrac{11.5 + 0.5}{2} = 6 \text{ months}\)
Total drawings \(= 500 \times 12 = ₹\,6000\), so interest \(= 6000 \times \text{rate} \times \dfrac{6}{12}\).
Hence, 6 months.
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