Raman, a partner withdrew ₹10,000 at the beginning of every month for the first 8 months, then ₹15,000 at the end of every month for the last 4 months. Calculate interest on drawings to be changed at 6% p.a. for the year ending March 31, 2023.

₹3,850

The correct answer is option 4- ₹3,850.

In starting of 8 months, partner withdrew at the beginning and in last 4 months, he withdrew at the end.
Interest is 6% p.a.
Lets divide the question in 2 parts. firstly calculate the interest for 8 months in which drawings are made at the beginning and then for the last 4 months in which drawings are made at the end.

Ist part-
Total drawings for 8 months = 10,000 x 8
                                             = ₹80,000
Average period for 8 months = (12+5)/2
                                             = 8.5 months
Interest for 8 months = 80,000 x 8.5/12 x 6/100
                                  = ₹3,400

2nd part-
Total drawings for 4 months = 15,000 x 4
                                             = ₹60,000
Average period for 4 months = (3+0)/2
                                             = 1.5 months
Interest for 4 months = 60,000 x 1.5/12 x 6/100
                                  = ₹450

Total interest  = 3,400 + 450
                       = ₹3,850