Girdhar, a partner, withdrew ₹ 5,000 in the beginning of each quarter, and interest on drawings was calculated as ₹ 1,500 at the end of accounting year 31 March 2022. What is the rate of interest on drawings charged?

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12% p.a. Explanation: Amount of total drawings = 5,000 $\times$ 4 = 20,000 Interest on drawings = `"Total drawings" xx "Rate of interest"/100 xx "Average period"/12 1,500 = 20,000 xx "Rate of interest"/100 xx 7.$\frac{5}{12}$ Rate of interest = (1,500 xx 100 xx 12)/(20,000 xx 7.5) Rate of interest = (18,00,000)/(1,50,000)` Rate of interest = 12%

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