"A partner draws ₹5,000 in the middle of every month for the six months. Interest on drawings is charged at 10%. The amount for interest would be --"
Answer & explanation
Correct answer: option 2
The correct answer is option 2- ₹3,000.
Total drawings = 5000 x 6
= ₹30000
Interest on drawings = 30000 x 10/100
= 3000
* As interest rate is given without word per annum for interest is calculated for the full year by ignoring time factor.