Read the information carefully and answer the questions.

A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use.

The amounts withdrawn were : ₹12,000 on June 01, 2019, ₹8,000; on August 31, 2019, ₹3,000; on September 30, 2019, ₹7,000, on November 30, 2019, and ₹6,000 on January 31, 2020.

Calculate interest on drawings, if the rate of interest is 9 percent per annum.

Calculate Interest on drawings for the amount ₹12,000 on June 1, 2019.

₹900

The correct answer is option 2- ₹900.

Amount withdrawn on June 1, 2019 = ₹12,000
Interest rate = 9% p.a.
Interest will be calculated from 1 June 2019 to 31st March 2020 i.e. 10 months

Interest on drawings = 12,000 x 9/100 x 10/12
                               = 900