Based on 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 partnership deed 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When fixed amount is withdrawn at the end of each quarter by a partner, then interest on drawing will be charged for a period of: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When the amount is withdrawn at the end of each quarter.
Ist drawing = 30th June, so months left after it are 9.
Last drawing = 31st March, so months left after it are 0.
Average Period = (No. of months left after 1 drawings + No. of months left after last drawings)/2
= (9+0)/ 2
= 4.5 months