Dev withdrew ₹10,000 on 15th day of every month from the partnership firm. Interest on drawings was to be charged @ 12% per annum. Calculate interest on Dev’s drawings?

₹7,200

The correct answer is option 2- ₹7,200.

Total amount of drawings = ₹10,000 x12
                                         = ₹1,20,000

Average period = (11.5 + 0.5)/2
                        = 6 months

Interest On Dev's Drawings = 1,20,000 x 12/100 x 6/12
                                            = ₹7,200