Select the amount of interest on drawing to be charged from Shashi, if she withdrew evenly ₹60,000 from partnership firm throughout the year ending March 31st, 2023 and the interest on drawings is to be charged @8% per annum.
Answer & explanation
Correct answer: option 3
The correct answer is Option 3 - ₹2,400.
Interest on drawings = Total drawings x Rate of interest/100 x 6/12
= 60,000 x 8/100 x 6/12
= 2,400
* As no fixed time is given so interest is calculated on average base of 6 months.