Determine the amount of interest on drawing to be charged from Ritik.

Read the passage given below and answer the question.

Teesha and Ritik are partners in a firm without any agreement. Due to lack of agreement they realised that there was contradiction between them on one issue or the other, so they decided to enter into a written agreement with regard to different terms and conditions.

As per the agreement they will be sharing profits in the ratio of 3 : 2. At the beginning of 2022-2023 i.e. 1^st April 2022 their capital were ₹60,000 and ₹40,000 respectively. They earn a profit of ₹30,000 for the year ending 31^st March 2023. According to agreement, both Teesha and Ritik are entitled to ₹1,000 per month as salary and 5% p.a interest on their capital. They are also to be charged an interest of 5% p.a on their drawings, which was ₹12,000 for Teesha and ₹8,000 for Ritik for the year 2022-2023.

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → ₹200

Only the total drawings are given, not the dates, so the drawings are taken as made evenly through the year and interest is charged for an average period of six months.

Interest on Ritik’s drawings = ₹8,000 × 5/100 × 6/12 = ₹200

(Teesha: ₹12,000 × 5/100 × 6/12 = ₹300)

The NCERT exercise with these same figures charges the interest “irrespective of the period”; the paper leaves those words out, so the rule for drawings without dates applies.

NCERT (2026-27 edition):
Numerical Questions – “1. Triphati and Chauhan are partners in a firm sharing profits and losses in the ratio of 3:2. Their capitals were Rs.60,000 and Rs.40,000 as on April 01, 2019. During the year they earned a profit of Rs. 30,000. According to the partnership deed both the partners are entitled to Rs. 1,000 per month as salary and 5% p.a. interest on their capital. They are also to be charged an interest of 5% p.a. on their drawings, irrespective of the period, which is Rs. 12,000 for Tripathi, Rs. 8,000 for Chauhan. Prepare Partner’s capital/current accounts when, capitals are fixed.”

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When Dates of Withdrawal are not specified – “… When the total amount withdrawn is given but the dates of withdrawals are not specified, it is assumed that the amount was withdrawn evenly throughout the year.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.”

Read the passage given below and answer the question.

Determine the amount of interest on drawing to be charged from Ritik.

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → ₹200

Only the total drawings are given, not the dates, so the drawings are taken as made evenly through the year and interest is charged for an average period of six months.

Interest on Ritik’s drawings = ₹8,000 × 5/100 × 6/12 = ₹200

(Teesha: ₹12,000 × 5/100 × 6/12 = ₹300)

The NCERT exercise with these same figures charges the interest “irrespective of the period”; the paper leaves those words out, so the rule for drawings without dates applies.