Accountancy Part AAccounting for Partnership

When the total amount withdrawn is given but the date of withdrawal i…

When the total amount withdrawn is given but the date of withdrawal is not given then interest on drawings is charged for a period of:

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 6 months

When only the total drawings for the year are known, the amount is taken as withdrawn evenly through the year. On average, each withdrawal then stays out for half the year, so interest on the total is charged for 6 months.

For example, total drawings ₹60,000 at 8% p.a. give interest = ₹60,000 × 8/100 × 6/12 = ₹2,400.

Why the other options are incorrect

Option (1) 3 months — Incorrect. This would assume all drawings were made towards the end of the year.
Option (3) 9 months — Incorrect. This would assume drawings were made mostly in the first quarter.
Option (4) 12 months — Incorrect. This would assume the whole amount was drawn on the first day of the year.

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When Dates of Withdrawal are not specified – “When the total amount withdrawn is given but the dates of withdrawals are not specified, it is assumed that the amount was withdrawn evenly throughout the year.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calculation of interest, the period would be taken as six months, which is the average period assuming, that amount is withdrawn evenly in the middle of the month, throughout the year.”