Accountancy Part AAccounting for Partnership

Calculate interest on Tushar's drawings at 14% p.a. if he had drawn ₹…

Calculate interest on Tushar's drawings at 14% p.a. if he had drawn ₹1,35,000 during the year (dates of withdrawal not given).

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → ₹9,450

The dates of the drawings are not given, so they are taken as made evenly during the year and interest is charged for an average period of 6 months.

Interest on drawings = ₹1,35,000 × 14/100 × 6/12

= ₹9,450

NCERT (2026-27 edition):
Numerical Questions

Extract from the NCERT textbook

NCERT (2026-27 edition):
When Dates of Withdrawal are not specified – “… When the total amount withdrawn is given but the dates of withdrawals are not specified, it is assumed that the amount was withdrawn evenly throughout the year. For example; Shakila withdrew Rs. 60,000 from partnership firm during the year ending March 31, 2020 and the interest on drawings is to be charged at the rate of 8 per cent per annum. For calculation of interest, the period would be taken as six months, which is the average period assuming, that amount is withdrawn evenly in the middle of the month, throughout the year.”