Read the information carefully and answer the questions.

A partner withdrew money during the year ending March 31, 2020 from his capital account, for his personal use.

The amounts withdrawn were : ₹12,000 on June 01, 2019, ₹8,000; on August 31, 2019, ₹3,000; on September 30, 2019, ₹7,000, on November 30, 2019, and ₹6,000 on January 31, 2020.

Calculate interest on drawings, if the rate of interest is 9 percent per annum.

The total amount of interest on drawings will be:

₹1,755

 The correct answer is option 2- ₹1,755.

Interest on drawings = Total product of drawings x Rate of interest/100 x 1/12
                               = 2,34,000 x 9/100 x 1/12
                               = ₹1,755