Question

Gopal is a partner in a firm. He withdrew ₹ 1,000 p.m. regularly on the first day of every month during the year ended 31st March, 2025, for personal expenses. If interest on drawings is charged @ 15% p.a., calculate the interest on the drawings of Gopal.

Answer 1

Given, Monthly drawings = ₹ 1,000

Period = 12 months

Rate of Interest = 15% p.a.

Total drawings = ₹ 1,000 × 12 = ₹ 12,000

Since drawings are made on the 1st day of every month,

Average period = `(12 + 1)/2` = 6.5 months

Interest on drawings = `12,000 xx 15/100 xx 6.5/12`

= `12,000 xx 0.15 xx 6.5/12`

= 12,000 × 0.08125

= ₹ 975