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 he withdrew Rs.4000 per month at the beginning of every month then Average period for interest charged on Drawing will be:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 6.5 months.
When the amount is withdrawn at the beginning of each month.
Ist drawing = 1st April, so months left after it are 12.
Last drawing = 1st March, so months left after it are 1.
Average Period = (No. of months left after 1 drawings + No. of months left after last drawings)/2
= (12+1)/ 2
= 6.5 months