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

₹1200 ₹1320 ₹1440 ₹1500

₹1440

Interest on Drawings= Total Money Withdrawn during the year (2,000*12)*rate of Interest (12%)*Average Period/12. IF NOTHING IS MENTIONED THEN AVERAGE PERIOD IS TAKEN 6 MONTHS. 24,000*12/100*6/12=1440