Question

Mohan, a partner, withdrew \(Rs.~20,000\) on 1st April, 2024 and \(Rs.~40,000\) on 1st October, 2024. Interest on Drawings @ \(6%\) p.a. on 31st March, 2025 will be

• A. \(Rs.~2,400\)
• B. \(Rs.~3,600\)
• C. \(Rs.~1,800\)
• D. \(Rs.~1,200\)

Hint:

Interest on drawings: \[ = \frac{\text{Amount}\times\text{Rate}\times\text{Time}}{100} \] where time is calculated from date of withdrawal till year-end.

Answer 1

The Correct Option is C

Interest on drawings is calculated from the date of withdrawal till the end of the accounting year.
Step 1: Interest on first withdrawal Amount withdrawn: \[ Rs.~20,000 \] Date: \[ 1^\text{st}\ \text{April, 2024} \] Period: \[ 12\ \text{months} \] Interest: \[ = \frac{20,000\times6\times12}{100\times12} \] \[ = Rs.~1,200 \]
Step 2: Interest on second withdrawal Amount withdrawn: \[ Rs.~40,000 \] Date: \[ 1^\text{st}\ \text{October, 2024} \] Period: \[ 6\ \text{months} \] Interest: \[ = \frac{40,000\times6\times6}{100\times12} \] \[ = Rs.~1,200 \]
Step 3: Calculate total interest \[ \text{Total Interest} = 1,200+1,200 \] \[ = Rs.~2,400 \] Thus: \[ \boxed{Rs.~2,400} \] Option analysis:
• Option (A): Correct
• Option (B): Incorrect
• Option (C): Incorrect
• Option (D): Incorrect Hence: \[ \boxed{\text{(A)}} \]