Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

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.

If Chirag withdraw ₹5000 per month in the middle of every month then the Average period for interest charged on Drawing will be:

Options:

6.5 months

6 months

5.5 months

4.5 months

Correct Answer:

6 months

Explanation:

The correct answer is Option (2) → 6 months.

When the amount is withdrawn at the middle of each month
Ist drawings = 15 April. Months left after it is 11.5
Last drawing = 15 March. Months left after this is 0.5
Average Period = (No. of months left after 1 drawings + No. of months left after last drawings)/2
                        = (11.5+0.5)/ 2
                        = 6 months