Match List-I with List-II. List-1 (Interest on Drawings) List-II Time…

Match List-I with List-II.

List-1 (Interest on Drawings)	List-II Time (Month)
(A) When the amount is withdrawn at the beginning of each month	(I) 6 months
(B) When the amount is withdrawn at the end of each month	(II) 6.5 months
(C) When the amount is withdrawn at the middle of each month	(III) 5.5 months
(D) When the amount is withdrawn at the end of each quarter	(IV) 4.5 months

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 3

The correct answer is Option (3) → (A)-(II), (B)-(III), (C)-(I), (D)-(IV)

When the same amount is withdrawn at regular intervals, interest on drawings is charged on the total drawings for the average period the money was out of the firm during the year. The average period is (months for the first drawing + months for the last drawing) ÷ 2.

(A) When the amount is withdrawn at the beginning of each month — this matches (II) 6.5 months.
(12 + 1) ÷ 2 = 6.5 months

(B) When the amount is withdrawn at the end of each month — this matches (III) 5.5 months.
(11 + 0) ÷ 2 = 5.5 months

(C) When the amount is withdrawn at the middle of each month — this matches (I) 6 months.
(11.5 + 0.5) ÷ 2 = 6 months

(D) When the amount is withdrawn at the end of each quarter — this matches (IV) 4.5 months.
(9 + 0) ÷ 2 = 4.5 months

NCERT (2026-27 edition):
Interest on Drawings – “… While calculating the time period, attention must be paid to whether the fixed amount was withdrawn at the beginning (first day) of the month, middle of the month or at the end (last day) of the month. If withdrawn on the first day of every month, interest on total amount will be calculated for 6½ months; if withdrawn at the end at every month, it will be calculated for 5½ months, and if withdrawn during the middle of the month, it will be calculated for 6 months.”

NCERT (2026-27 edition):
Interest on Drawings

Extract from the NCERT textbook