Target Exam

CUET

Subject

-- Accountancy Part A

Chapter

Accounting for Partnership

Question:

Based on following answer the question:

Chirag and Jyoti are two partners in a firm sharing profits and losses equally. Chirag withdrew money for his personal use. As per partnership deed rate of interest on drawings is 9% per annum.

If an amount of ₹4000 per month was withdrawn by him at the end of each month, then the Average period for interest charged on Drawing will be:

Options:

6.5 months

6 months

5.5 months

4.5 months

Correct Answer:

5.5 months

Explanation:

The correct answer is Option (3) → 5.5 months.

Ist drawing = 30 April. So, months left after ist drawing is 11.
Last drawing = 31 March. So, months left after last drawing is 0.
Average period = (Months left after ist drawings + Months left after last drawings)/2
                       = (11+0)/2
                       = 11/2
                       = 5.5