What will be the interest on drawings of partner A, if he withdrew ₹60,000 in beginning of each quarter if Partnership deed provide interest on drawings @10% p.a.?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹15,000.
Total drawings = 60,000 x 4
= ₹2,40,000
Average period = (12+3)/2
= 7.5 months
Interest on drawings = 2,40,000 x 7.5/12 x 10/100
= ₹15000