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Question : A partner, Gaurav, withdrew Rs.12,000 in the beginning of the each quarter during the year. Interest on drawings @ 8% chargeable to him will be:

Option 1: Rs.1,440

Option 2: Rs.2,400

Option 3: Rs.2,080

Option 4: Rs.1,760


Team Careers360 14th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Rs.2,400


Solution : Time period for beginning of each quarter = (Time left after 1st drawing + Time left after last drawing)/2 = (12 + 3)/2 = 7.5 Months
Interest on drawings = Total drawings X Interest on drawings X Time period = Rs.(12,000 X 4) X 8% X 7.5/12 = Rs.2,400
Hence, the correct option is 2.

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