Please solve the question with necessary steps and explanantions.
Dear Student,
Total Drawings:
Tisha: 25,000 x 4 = ₹1,00,000
Divya: 20,000 + 17,5000 + 12,500 = ₹50,000
Calculation of Opening Capital
Interest on Capital:
Tisha: 8,50,000 x 10/100 = ₹85,000
Divya: 5,50,000 x 10/100 = ₹55,000
Interest on Drawings:
Tisha:
Average Period = (Months left after 1st drawing + months left after last drawing)/2
Average Period = 9/2 = 4.5
Tisha's Interest on Drawings = 1,00,000 x 6/100 x 4.5/12 = ₹2,250
Divya:
Divya's Interest on Drawings = ₹1563(approx.)
Regards
Total Drawings:
Tisha: 25,000 x 4 = ₹1,00,000
Divya: 20,000 + 17,5000 + 12,500 = ₹50,000
Calculation of Opening Capital
Particulars | Tisha | Divya |
Closing Capital Add: Drawings Less: Profits |
10,00,000 1,00,000 2,50,000 |
7,50,000 50,000 2,50,000 |
Opening Capital | 8,50,000 | 5,50,000 |
Interest on Capital:
Tisha: 8,50,000 x 10/100 = ₹85,000
Divya: 5,50,000 x 10/100 = ₹55,000
Interest on Drawings:
Tisha:
Average Period = (Months left after 1st drawing + months left after last drawing)/2
Average Period = 9/2 = 4.5
Tisha's Interest on Drawings = 1,00,000 x 6/100 x 4.5/12 = ₹2,250
Divya:
Date of drawings | Period remaining | Interest |
---|---|---|
31 May, 2020 01 Nov, 2020 01 Feb, 2021 |
10 5 2 |
20,000 x 6/100 x 10/12 = ₹1,000 17,500 x 6/100 x 5/12 = ₹437.5 12,500 x 6/100 x 2/12 = ₹125 |
₹1562.5 or ₹ 1563(approx.) |
Divya's Interest on Drawings = ₹1563(approx.)
Regards