Question

Calculate the interest on Drawings of Charulata @ 9% p.a. for the year ended 31st March, 2026, if she withdrew ₹ 10,000 each quarter.

Answer 1

1. Total Drawings

Number of quarters in a year: 4

Amount per quarter: ₹ 10,000

Total amount withdrawn: 10,000 × 4 = 40,000

2. Average Period

When the time or case is not specified for quarterly drawings, the average period is automatically taken as 6 months.

3. Interest Formula & Computation

Interest on Drawings = `"Total Drawings" "Rate"/100 xx "Average Period"/12`

Interest on Drawings = `40,000 xx 6/100 xx 6/12 = 1,800`