In a partnership firm, According to the product method, the total product of drawings is ₹4,80,000 and the rate of interest on drawings is 7% p.a. Calculate the interest on drawings.

₹2,800

The correct answer is option 3- ₹2,800.

Interest on drawing = Total of Products of drawings × (Rate of interest/100) × (1/12)
                                = 4,80,000 × 7/100 × 1/12
                                = ₹2,800