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?
Answer & explanation
Correct answer: option 2
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