X and Y are partners in a firm. X withdraws ₹5,000 in the beginning of each month for his personal use. As per the partnership deed, interest on drawings is charged @12% p.a. The interest on drawings will be:

₹3,900

Total drawings = Monthly drawings x 12
                        = 5000 x 12
                        = 60000
Average period = (Months left after first drawing + Months left after last drawing)/2
                         = (12+1)/2
                         = 6.5 months
Interest on drawings = Total drawings x Average period/12 x Rate of interest/100
                                  = 60000 x 6.5/12 x 12/100
                                  = ₹3900