Mehul, Harsh and Asgar are partners in a firm sharing profit & loss equally. Harsh withdrew the following amount from the firm, for his personal use during 2020-21.
| Date | Harsh(₹) |
| April 1, 2020 | ₹ 5,000 |
| July 1, 2020 | ₹ 8,000 |
| December 1, 2020 | ₹ 5,000 |
| March 1, 2021 | ₹ 4,000 |
Calculate the interest on drawings, when rate of interest is 10% p.a.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) - ₹ 1,300
| DATE OF DRAWINGS | AMOUNT (₹) | MONTHS FOR WHICH DRAWINGS MADE | PRODUCT |
| April 1, 2020 | ₹ 5,000 | 12 | 60,000 |
| July 1, 2020 | ₹ 8,000 | 9 | 72,000 |
| December 1, 2020 | ₹ 5,000 | 4 | 20,000 |
| March 1, 2021 | ₹ 4,000 | 1 | 4,000 |
| Total drawings | 1,56,000 | ||
Interest on drawings = Total drawings x Rate of interest/100 x 1/12
= 1,56,000 x 10/100 x 1/12
= ₹1,300