X and Y are partners in a firm. X withdraws ₹5,000 in the beginning of each month for his personal use. As per partnership deed, interest on drawings is charged @12% p.a. The interest on drawings will be:

₹3,900

The correct answer is Option (2) - ₹3,900.

X withdraws ₹5,000 in the beginning of each month for his personal use.
Interest on drawings = 12% p.a.

Total drawings = 5,000 x 12
                      = 60,000

Months left after ist drawing = 12
Months left after last drawing = 1
Average period = (12+1)/2
                       = 6.5 months

Interest on drawings = Total drawings x Rate of interest/100 x Average period/12
                               = 60,000 x 12/100 x 6.5/12
                               = 3,900