The total amount of interest on drawings will be:

Calculation of Interest on Drawings

Interest on drawings is calculated from the date of each withdrawal till the end of the financial year (March 31, 2020).

Formula: Interest = Amount × Rate × Time Period (in months)/12

Calculation for each withdrawal:

1. Withdrawal on June 1, 2019: Rs. 12,000

• Time period: June 1, 2019 to March 31, 2020 = 10 months
• Interest = $12,000 × \frac{9}{100} × \frac{10}{12}$ = Rs. 900

2. Withdrawal on August 31, 2019: Rs. 8,000

• Time period: August 31, 2019 to March 31, 2020 = 7 months
• Interest = $8,000 × \frac{9}{100} × \frac{7}{12}$ = Rs. 420

3. Withdrawal on September 30, 2019: Rs. 3,000

• Time period: September 30, 2019 to March 31, 2020 = 6 months
• Interest = $3,000 × \frac{9}{100} × \frac{6}{12}$ = Rs. 135

4. Withdrawal on November 30, 2019: Rs. 7,000

• Time period: November 30, 2019 to March 31, 2020 = 4 months
• Interest = $7,000 × \frac{9}{100} × \frac{4}{12}$ = Rs. 210

5. Withdrawal on January 31, 2020: Rs. 6,000

• Time period: January 31, 2020 to March 31, 2020 = 2 months
• Interest = $6,000 × \frac{9}{100} × \frac{2}{12}$ = Rs. 90

Total Interest on Drawings = 900 + 420 + 135 + 210 + 90 = Rs. 1,755

Correct Option: 2 (Rs. 1,755)