Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:

When equal amounts are withdrawn in the beginning of every month for 9 months and the accounting period is of 9 months also, then interest on drawings are charged for how many months?

Options:

5

6

6.5

9

Correct Answer:

5

Explanation:

Interest on Drawings = Total of drawings × Rate/100 × 5/12
Average period = (9+1)/ 2= 5 months