When the total amount withdrawn is given, but the dates of withdrawals are not specified, what assumption is made regarding the timing of the withdrawals?
Answer & explanation
Correct answer: option 3
The correct answer is option 3- The amount was withdrawn evenly throughout the year.
When the dates of withdrawals are not specified, and only the total amount withdrawn is given, it is assumed that the withdrawals were made evenly throughout the year and the average period is taken 6 months for calculating interest on drawings.