A partner draws ₹7,000 per month in the beginning of the each month from his partnership firm. Calculate the interest on drawings if rate of interest is charged @15% p.a.
Answer & explanation
Correct answer: option 4
The correct answer is option 4- ₹6,825.
Total amount of drawings = ₹7,000 x 12
= 84,000
Ist drawing = 1 April, So months left 12
Last drawing = 1 March, So months left 1
Average period of drawings = (12+1) months /2
= 6.5 months
Interest on Ansh drawings = 84,000*15/100*6.5/12
= ₹6,825