If Amit, a partner, withdrew ₹10000 per month in the end, what will be the amount of interest on the drawing if it is calculated @ 8% p.a.?
Options:
₹9600
₹4800
₹5200
₹4400
Correct Answer:
₹4400
Explanation:
When the amount is withdrawn at the end of each month Average Period = (No. of months of 1 drawings + No. of months of last drawings)/2 = (11+0)/ 2 = 5.5 months Total drawings = 10000 X 12 = ₹120000 Interest on drawings =120000 X 8/100 X 5.5/12 = ₹4400