Accountancy Part AAccounting for Partnership

When drawings are made at the beginning of every month for the full y…

When drawings are made at the beginning of every month for the full year, interest on drawings is calculated for...........

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 6.5 months

When the same amount is withdrawn on the first day of every month, the first drawing stays out for 12 months and the last for 1 month. The average of 12 and 1 is (12 + 1)/2 = 6½ months, so interest on the total drawings is charged for 6.5 months.

NCERT (2026-27 edition):
Interest on Drawings – “… If withdrawn on the first day of every month, interest on total amount will be calculated for 6½ months; if withdrawn at the end at every month, it will be calculated for 5½ months, and if withdrawn during the middle of the month, it will be calculated for 6 months.”