Calculate interest on drawings @ 12% p.a. if one partner withdraws ₹2,000 once in a month.

₹1,440

The correct answer is option 3- ₹1,440.

Total Money Withdrawn during the year = (2,000 x 12)
                                                               = 24,000

Rate of Interest = 12%

Average Period = 12
IF NOTHING IS MENTIONED THEN AVERAGE PERIOD IS TAKEN 6 MONTHS.

Interest on Drawings = Total Money Withdrawn during the year X rate of Interest/100 x Average Period/12
                                   = 24,000 x 12/100 x 6/12
                                   = 1,440