Question

Anuj and Kartik were partners in a firm sharing profits and losses in the ratio of 5 : 4. Anuj withdrew ₹ 20,000 at the beginning of every month starting 1st April, 2023 to 31st March, 2024. Interest on drawings is charged @ 6% p.a. The interest on drawings will be:

• A. ₹ 4,800
• B. ₹ 1,200
• C. ₹ 4,200
• D. ₹ 3,600

Hint:

Use the formula with (n+1)/2 when drawings are made at the beginning of each month to calculate interest.

Answer 1

The Correct Option is D

Step 1: Monthly Drawings Calculation
Monthly drawings amount = ₹ 20,000
Total number of months = 12
Total drawings for the year = ₹ 20,000 × 12 = ₹ 2,40,000

Step 2: Interest on Drawings (withdrawn at the beginning of each month)
\[\text{Interest} = \frac{Total Drawings × Rate × (n+1)}{2 × 12 × 100}\]
\[= \frac{2,40,000 × 6 × 13}{2 × 12 × 100} = ₹ 3,600\]