Calculate interest on drawings if Ram withdrew Rs. 3,000 per month at the beginning of each month for the whole year, and interest on drawings is char - Accountancy MCQ CUET Accountancy 2025 3 June Shift 2 2026 | ExamTest.live

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1 mark

Calculate interest on drawings if Ram withdrew Rs. 3, 000 per month at the beginning of each month for the whole year, and interest on drawings is charged @ 9% per annum.

Solution & Step-by-step Explanation

Total amount withdrawn during the year: Total Drawings = 3, 000 \times 12 = Rs. 36, 000 When drawings are made at the beginning of each month for a full year, interest is calculated for an average period of 6.5 months: Average Period = \frac{12 + 1}{2} = 6.5 months Interest on Drawings = Total Drawings \times \frac{Rate}{100} \times \frac{6.5}{12} Interest = 36, 000 \times \frac{9}{100} \times \frac{6.5}{12} = 360 \times 9 \times \frac{6.5}{12} = 30 \times 9 \times 6.5 = Rs. 1, 755

Try it yourself before checking the explanation above.

Calculate interest on drawings if Ram withdrew Rs. 3, 000 per month at the beginning of each month for the whole year, and interest on drawings is charged @ 9% per annum.

Rs. 1455

Rs. 1745

Rs. 1485

Rs. 1755

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