Calculate interest on drawings of a partner at the rate of 15% per annum if he withdrew ₹10,000 per month at the end of each month.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹8,250.
Total amount of drawings = 10,000*12
= ₹1,20,000
Average period of drawings = (11+0) months/2
= 5.5 months
So, interest on drawings = ₹1,20,000*15/100*5.5/12
= ₹8,250