Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. What will be the amount of interest if - Accountancy MCQ CUET Accountancy 2025 30 May Shift 2 2026 | ExamTest.live

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Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. What will be the amount of interest if the amount is withdrawn at the beginning of each month and rate of interest on drawings is 8% per annum?

Solution & Step-by-step Explanation

Total drawings during the year: Total Drawings = Rs. 10, 000 \times 12 = Rs. 1, 20, 000 When drawings are made regularly at the beginning of each month, interest is calculated for an average period of 6.5 months: Average Period = \frac{12 + 1}{2} = 6.5 months Interest on drawings: Interest = Total Drawings \times \frac{Rate}{100} \times \frac{Average Period}{12} Interest = 1, 20, 000 \times \frac{8}{100} \times \frac{6.5}{12} = 9, 600 \times \frac{6.5}{12} = 800 \times 6.5 = Rs. 5, 200

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Aashish withdrew Rs. 10,000 per month from the firm for his personal use during the year ending March 31, 2017. What will be the amount of interest if the amount is withdrawn at the beginning of each month and rate of interest on drawings is 8% per annum?

Rs. 4,800

Rs. 5,000

Rs. 5,200

Rs. 4,200

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