Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:
When equal amounts are withdrawn at the middle of every month throughout the year, the interest on drawings are charged for how many months ?
Options:
5.5
6
6.5
9
Correct Answer:
6
Explanation:
If money is withdrawn on the first day of every month, interest on total amount will be calculated for 6½ months; if withdrawn at the end at every month, it will be calculated for 5½ months, and if withdrawn during the middle of the month, it will be calculated for 6 months.
Interest on Drawings = Total of drawings × Rate/100 × 6/12