Question

A partner withdraws ₹8,000 each on 1st April and 1st October. Interest on his drawings @6% p.a. on 31st March will be:

• A. ₹480
• B. ₹720
• C. ₹240
• D. ₹960

Hint:

When drawings are made on fixed dates, calculate interest separately for each using time (in months) till year-end.

Answer 1

The Correct Option is B

Step 1: Scenario Overview.
Drawings are ₹8,000 per instance, occurring on:
April 1st (in use for 12 months)
October 1st (in use for 6 months)
Step 2: Interest on Drawings Calculation. \[\text{Interest} = \frac{\text{Amount} \times \text{Rate} \times \text{Time (in months)}}{100 \times 12}\]Calculation for April 1st drawing: \[\text{Interest} = \frac{8000 \times 6 \times 12}{100 \times 12} = ₹480\]Calculation for October 1st drawing: \[\text{Interest} = \frac{8000 \times 6 \times 6}{100 \times 12} = ₹240\]Step 3: Aggregate Interest. \[\text{Total Interest} = ₹480 + ₹240 = ₹720\]