Based on the 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 the partnership deed, the rate of interest on drawings is 9% per annum.
If the amounts withdrawn were ₹12,000 on June 01, 2018, ₹8000 on August 31, 2018, Rs.3000 on September 30, 2018, ₹7000 on November 30, 2018 and Rs.6000 on January 31, 2019, calculate the total amount of interest on drawings for the year ending on 31st March, 2019.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹1,755
Interest is charged at 9% p.a. on each drawing from its date to 31st March, 2019.
₹12,000 × 9/100 × 10/12 (June 1 to March 31) = ₹900
₹8,000 × 9/100 × 7/12 (August 31 to March 31) = ₹420
₹3,000 × 9/100 × 6/12 (September 30 to March 31) = ₹135
₹7,000 × 9/100 × 4/12 (November 30 to March 31) = ₹210
₹6,000 × 9/100 × 2/12 (January 31 to March 31) = ₹90
Total interest on drawings = 900 + 420 + 135 + 210 + 90 = ₹1,755
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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