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Asked by Vinodha Last Modified
Answer Drawings per month during the year, in the absence of any specific date mentioned, is considered to be withdrawn at the middle of each month.
Hence Average period will be 6 months:
Interest on drawings = Total drawings X Interest X (Avg Period/12)
Interest on drawings = 2000 x 12 X (12/100) X (6/12)
= Rs. 1,440
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