Solution
Interest on Dev’s Drawings=10,000×12=1,20,000×12/100×6/12=7,200
Note; Interest on drawing will be calculated for 6 months as average, because same same amount withdrawn in the middle of every month during the year.
Dev withdrew & 10,000 on 15th day of every month. Interest on drawings was to be charged @ 12 P.a. Calculate interest on Dev’s Drawings.
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