A and B are partners sharing profits equally. A drew regularly ₹ 4,000 at the end of every month for six months ended 30th September

A and B are partners sharing profits equally. A drew regularly ₹ 4,000 at the end of every month for six months ended 30th September 2022. Calculate interest on drawings @ 5% p.a. for a period of six months.

[Ans: Interest on Drawings – ₹ 250]

[Hint: Interest on drawings will be charged for an average period of 2.5 months on total drawings.]