Question

A partner withdraws ₹8,000 each on 1st April and 1st October. Interest on his drawings @6% p.a. on 31st March will be:

• A. ₹480
• B. ₹720
• C. ₹240
• D. ₹960

Hint:

When drawings are made on fixed dates, calculate interest separately for each using time (in months) till year-end.

Answer 1

The Correct Option is B

Step 1: Understand the scenario.
Drawings are ₹8,000 each on:
1st April (used for 12 months)
1st October (used for 6 months)
Step 2: Apply the interest on drawings formula: \[ \text{Interest} = \frac{\text{Amount} \times \text{Rate} \times \text{Time (in months)}}{100 \times 12} \] For 1st April drawing: \[ \text{Interest} = \frac{8000 \times 6 \times 12}{100 \times 12} = ₹480 \] For 1st October drawing: \[ \text{Interest} = \frac{8000 \times 6 \times 6}{100 \times 12} = ₹240 \] Step 3: Add both amounts. \[ \text{Total Interest} = ₹480 + ₹240 = ₹720 \]