Question

Interest charged on drawings @ 5% when total drawings were Rs. 1,00,000.

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Answer 1

It should be remember that while calculating Interest on drawings It should be calculated for 6 months only

i.e. Interest on drawings

= 1,00,000 x 5% x 6/12

= 5000 x 6/12

= 2500

So the answer is 2500.

If period is specified for eg. 6,5,8,etc.months then take it otherwise It has to be calculated for 6 months only

Hope you will understand it