B and M are partners in a firm. They withdrew ₹ 48,000 and ₹ 36,000 respectively during the year evenly in the middle of every month. According to the partnership agreement, interest on drawings is to be charged @ 10% p.a.
Calculate interest on drawings of the partners using the appropriate formula.

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Solution

Since, the drawings are made evenly at the middle of every month, therefore interest on drawings is calculated for a period of six months.

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