Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Accounting for Partnership

Question:
For which period interest will be charged on partners drawings if date of drawings is not specified but total amount of drawings is given?
Options:
12 months
10 months
3 months
6 months
Correct Answer:
6 months
Explanation:
If the date of withdrawal is not mentioned, then the interest will be charged for an average period of 6 months.