Himanshu withdrew ₹2,500 at the end of each month. The partnership deed provides for charging of interest on drawings @ 12% p.a. Calculate interest on Himanshu's drawings for the year ended March 31, 2017.

₹1,650

The correct answer is option 2- ₹1,650.

Ist drawing = 30 April. So, months left after ist drawing is 11.
Last drawing = 31 March. So, months left after last drawing is 0.
Average period = (Months left after ist drawings + Months left after last drawings)/2
                      = (11+0)/2
                      = 11/2
                      = 5.5

Drawings per month = 2,500
Total drawings = 2,500 x 12
                      = 30,000

Interest rate = 12% p.a.

Interest on drawings = Total drawings x (interest rate/100) x (Average period/12)
                               = 30,000 x (12/100) x (5.5/12)
                               = ₹1,650