Ram, one of the partners, has withdrawn ₹1,00,000 from Business for his personal work. If the rate of interest charged on drawings is 12% p.a., find the amount of interest on drawings to be charged from Ram:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹6,000
The question gives the total drawings but not the dates. In that case the amount is taken as withdrawn evenly through the year, so interest is charged for an average period of six months.
Interest on drawings = ₹1,00,000 × 12/100 × 6/12
= ₹6,000
Charging ₹12,000 would treat the whole amount as drawn on the first day of the year.
NCERT (2026-27 edition):
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