If Amit, a partner, withdrew ₹10,000 per month in the end, what will be the amount of interest on the drawing if it is calculated @ 8% p.a.?
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹4,400.
When the amount is withdrawn at the end of each month
Average Period = (No. of months of 1 drawings + No. of months of last drawings)/2
= (11+0)/ 2
= 5.5 months
Total drawings = 10,000 X 12
= ₹1,20,000
Interest on drawings = 1,20,000 X 8/100 X 5.5/12
= ₹4,400