Based on the following, answer the question:
Chirag and Jyoti are two partners in a firm sharing profits and losses equally. Chirag withdrew money for his personal use. As per the partnership deed, the rate of interest on drawings is 9% per annum.
When fixed amount is withdrawn at the end of each quarter by a partner, then interest on drawing will be charged for a period of:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → 4.5 months
When a fixed amount is withdrawn at the end of each quarter, the first drawing (end of June) stays with the partner for 9 months and the last drawing (end of March) for 0 months.
Average period = (9 + 0) ÷ 2 = 4.5 months
Interest is therefore charged on the total drawings of the year for 4½ months. (Had the drawings been made at the beginning of each quarter, the period would be (12 + 3) ÷ 2 = 7½ months.)
Option (1) 6.5 months — Incorrect. This is the period for monthly drawings made at the beginning of each month.
Option (2) 5.5 months — Incorrect. This is the period for monthly drawings made at the end of each month.
Option (4) 6 months — Incorrect. This is the period for monthly drawings made in the middle of each month.
NCERT (2026-27 edition):
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