Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

A is a partner in the firm. He withdrew ₹10000 in each quarter during the year. Interest on her drawings at the rate of 9% will be:

Options:

₹1,350

₹3,600

₹900

₹1,800

Correct Answer:

₹3,600

Explanation:

The correct answer is option 2- ₹3,600.

Drawings in each quarter = ₹10,000
Quarters in total = 4
Total drawings = 10,000 x 4
                        = ₹40,000

As the interest rate is given without word per annum so interest will be calculated without considering time factor.

Interest on drawings = Total drawings x Interest rate/100
                                  = 40,000 x 9/100
                                  = ₹3,600