Ram, one of the partners, has withdrawn ₹1,00,000 from Business for his personal work.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.
Interest will be charged for 6 months as no specific date of drawings is given.
Interest on drawings = 1,00,000 x 12/100 x 6/12
= 6,000