Solution: Interest on Drawing of Rs. 12,000
The withdrawal of Rs. 12,000 was made on June 1, 2019 and the financial year ends on March 31, 2020.
Time Period Calculation:
From June 1, 2019 to March 31, 2020 = 10 months
Interest Calculation:
The formula for interest on drawings:
\text{Interest} = \frac{\text{Amount} \times \text{Rate} \times \text{Time}}{100}$ Where time is in years, so 10 months = $\frac{10}{12}$ years\text{Interest} = \frac{12,000 \times 9 \times 10}{100 \times 12}\text{Interest} = \frac{1,080,000}{1,200}\text{Interest} = \text{Rs. } 900$$
Note: Since the amount was withdrawn on June 1, 2019, interest is calculated for the remaining period of the financial year, which is 10 complete months (June to March). The interest is calculated on a time proportionate basis as the rate is per annum but the time period is less than a year.
Answer: Option 2 - Rs. 900