Step 1: Understanding the Concept:
Interest on drawings is an interest charged by the firm on the amounts withdrawn by partners for their personal use.
The calculation of interest depends on the amount, the rate of interest, and the specific time period for which the money was utilized by the partner during the accounting year.
The accounting year in this case ends on 31st March, 2025.
Key Formula or Approach:
The basic formula for Simple Interest is:
\[ \text{Interest} = \text{Principal Amount} \times \frac{\text{Rate}}{100} \times \frac{\text{Time in months}}{12} \]
Step 2: Detailed Explanation:
We must calculate the interest for each withdrawal separately based on the number of months from the date of withdrawal to the year-end (31st March, 2025).
First Withdrawal:
Amount = Rs. 20,000
Date of Withdrawal = 1st April, 2024
Period = 1st April, 2024 to 31st March, 2025 = 12 full months.
\[ \text{Interest on 1st withdrawal} = 20,000 \times \frac{6}{100} \times \frac{12}{12} \]
\[ = 20,000 \times 0.06 = \text{Rs. 1,200} \]
Second Withdrawal:
Amount = Rs. 40,000
Date of Withdrawal = 1st October, 2024
Period = 1st October, 2024 to 31st March, 2025 = 6 months (October, November, December, January, February, March).
\[ \text{Interest on 2nd withdrawal} = 40,000 \times \frac{6}{100} \times \frac{6}{12} \]
\[ = 40,000 \times 0.06 \times 0.5 = \text{Rs. 1,200} \]
Total Interest Calculation:
\[ \text{Total Interest on Drawings} = \text{Interest on 1st} + \text{Interest on 2nd} \]
\[ = 1,200 + 1,200 = \text{Rs. 2,400} \]
The result matches Option (A).
Step 3: Final Answer:
The total interest on Mohan's drawings for the financial year is Rs. 2,400.
Correct Answer is (A).