Mr. Kunal withdrew ₹10,000 per month at the end of each month from a firm for his personal use during the year ending March 31, 2022. What will be the interest on drawings if charged @ 8% p.a.?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Rs 4,400
When a fixed amount is withdrawn at the end of each month, the first drawing earns interest for 11 months and the last for 0 months.
Average period = (11 + 0) ÷ 2 = 5½ months
Total drawings = ₹10,000 × 12 = ₹1,20,000
Interest on drawings = ₹1,20,000 × 8/100 × 5.5/12 = ₹4,400
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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