The deed charges ten percent interest on drawings. If a partner withdrew sixty thousand rupees only at the end of the year what will be the interest?

Correct answer: Zero rupees

Direct answer: Option C, zero rupees, is correct. The formula is interest on drawings = drawings × rate × time. The partner withdrew Rs 60,000 at the very end of the year. Thus the time for which the amount was available for use during that accounting year is zero. Calculation: Rs 60,000 × 10% × 0/12 = Rs 0. Therefore no interest is charged for that year. Option A is wrong because Rs 6,000 is 10% of Rs 60,000 for a full year, but the money was not outstanding for a full year. Option B is wrong because Rs 3,000 would represent roughly six months’ interest, which is not the stated timing. Option C works because year-end withdrawal has no time outstanding in that year. Option D is wrong because Rs 500 has no matching calculation. The key is not only the amount and rate; time is equally important. Memory cue: end-of-year drawing means zero time, therefore zero interest.