A is a partner in the firm. He withdrew ₹40,000 during the year. Interest on her drawings at the rate of 9% p.a. will be:
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹1,800.
Total drawings = ₹40,000
As the date of drawings is not given, interest will be calculated for an average of 6 months.
Interest on drawings = Total drawings x Interest rate/100 x 6/12
= 40,000 x 9/100 x 6/12
= ₹1,800