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:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → ₹3,900
When an equal amount is withdrawn at the beginning of each month, the average period is (12 + 1)/2 = 6.5 months.
Total drawings = ₹5,000 × 12 = ₹60,000
Interest on drawings = ₹60,000 × 12/100 × 6.5/12
= ₹3,900
NCERT (2026-27 edition):
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