Calculation of Interest on Drawings for Rs. 7,000 withdrawn on November 30, 2019:
The time period for which interest needs to be calculated is from the date of withdrawal to the end of the financial year.
Time Period Calculation:
From November 30, 2019 to March 31, 2020 = 4 months
(December, January, February, March)
Formula for Interest on Drawings:
\text{Interest} = \frac{\text{Amount} \times \text{Rate} \times \text{Time}}{100}$ Where Time is expressed in years = $\frac{4}{12}$ years **Calculation:**\text{Interest} = \frac{7,000 \times 9 \times 4}{100 \times 12}= \frac{7,000 \times 9 \times 4}{1,200}= \frac{2,52,000}{1,200}= \text{Rs. } 210$$
Answer: Option 3 (Rs. 210)
Note: Interest on drawings is always calculated from the date of withdrawal till the end of the accounting year (March 31, 2020 in this case). Since the amount was withdrawn on November 30, 2019, it remained withdrawn for 4 complete months till the year-end.