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Asked by Manjunath Last Modified
Answer 
Calculations of the interest on drawings made by Ramesh for the year ended on 31st Dec, 2002 will be as follows -
1. When withdrawal is done at the beginning of the quarter-
6,000*4*10%*7.5/12= Rs 1,500
2. When withdrawal is done at the end of the quarter-
6,000*4*10%*4.5/12= Rs 900
3. When withdrawal is done during the middle of the quarter-
6,000*4*10%*6/12 = Rs 1,200
4. When it's on average basis then the treatment will be same as in 3rd case.
i.e. Rs 1,200
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