Question

Mathew is a partner who withdrew ₹ 20,000 during the year 2018. Interest on drawings is charged at 10% per annum. Calculate interest on drawings on 31^st December 2018.

Answer 1

Interest on drawings = `"Amount withdrawn" xx "Rate"/100 xx "Period of interest"`

= `20,000 xx 10/100 xx 6/12`

= ₹ 1,000