Ansh withdraws ₹2,500 at the end of each month. The partnership deed provides for charging the interest on drawings @ 12% p.a. Calculate interest on Ansh’s drawings for the year ended 31st March,2024?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- ₹1,650.
Total amount of drawings = ₹2500 x 12
= ₹30,000
Ist drawing = 30 April, So months left 11
Last drawing = 31 March, So months left 0
Average period of drawings = (11+0) months /2
= 5.5 months
Interest on Ansh drawings = 30,000*12/100*5.5/12
= ₹1,650