Practicing Success
Mohan, a partner withdraws ₹20,000 on 1st April, 2020 and ₹40,000 on 1st october 2020. What will be the interest on drawings @ 6% p.a. on 31st March 2021? |
₹2,400 ₹3,600 ₹1,800 ₹1,200 |
₹2,400 |
The correct answer is option 1- ₹2,400. Drawings of ₹20,000 on 1st April, 2020. It is withdrawn in the starting so interest is calculated for full year. Drawings of ₹40,000 on 1st October 2020. It is withdrawn at the end of 6 months so interest is calculated for remaining 6 months. Total interest on drawings = 1,200 +1,200 |