Question

Edward and Hayward are partners. Edward draws a fixed amount at the beginning of every quarter. Interest on drawings is charged @10% p.a. At the end of the year, interest on Edward’s drawings amounted to Rs.7,500. Drawings of Edward were:

(a) Rs. 34,000 per quarter.

(b) Rs. 44,000 per quarter

(c) Rs. 30,000 per quarter

(d) Rs. 60,000 per quarter

Answer 1

Correct answer is (c) Rs. 30,000 per quarter

Explanation: Edward and Hayward are partners. Edward draws a fixed amount at the beginning of every quarter. Interest on drawings is charged @10% p.a. At the end of the year, interest on Edward’s drawings amounted to Rs.7,500. Drawings of Edward were: Rs. 30,000 per quarter.