Calculate interest on drawings of Sakshi @10% p.a. for the year ended 31st March 2021 if her drawings during the year were ₹20000 ?
Answer & explanation
Correct answer: option 2
Drawings were made evenly throughout the year, interest on drawings has been calculated for an average period of 6 months.
Interest on drawings = 20000*10/100*6/12 = ₹ 1000